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:

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False beliefs held with strong conviction despite superior evidence to the contrary.

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