A Higher Level of Consumer Confidence Will Lead

question 21

Multiple Choice

A higher level of consumer confidence will lead

• A) output to increase and price to decrease in the short run.
• B) output to increase and price to increase in the short run.
• C) output to increase and price to remain the same in the short run.
• D) output to remain the same and price to increase in the short run.

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Definitions:

Aggregate Supply

The total supply of goods and services that companies in an economy plan on selling during a specific time period.

Deflation

A reduction in the general price level of goods and services in an economy over a period of time.

China

A country in East Asia, the world's most populous nation, with a rich cultural history and a significant global economic influence.

Canada

A country in North America known for its vast landscapes, multicultural cities, and bilingual English-French heritage.