If People Become Pessimistic About the State of the Economy

question 98

True/False

If people become pessimistic about the state of the economy, the consumption function shifts upward.

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Definitions:

Economic Development

The process by which a nation improves the economic, political, and social well-being of its people.

Low Income

Indicates earning levels that are significantly lower than the average or median income in a given region or society.

Labor Productivity

A measure of economic performance that calculates the output per unit of labor input, such as output per hour worked.

Human Capital

The collective skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.