If the Consumer Sentiment Index Turns Down Sharply Over a Period

question 59

Multiple Choice

If the consumer sentiment index turns down sharply over a period of several months, which of the following is most likely to occur in the near future?

• A) an increase in aggregate demand and expansion in real output
• B) a reduction in aggregate demand and a contraction in real output
• C) a reduction in aggregate demand and expansion in real output
• D) an increase in aggregate demand and a contraction in real output

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Definitions:

Z

Often refers to a Z-score in statistics, representing the number of standard deviations a data point is from the mean.

Continuous Random Variables

Variables that can take on numerous values within a defined range.

Examples

Examples are specific instances or items that are representative of a general case or category, often used to illustrate a point or explain a concept.

Normally Distributed

A distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.