Starting from Potential Output, If Consumer Confidence Increases and Consumers

question 29

Multiple Choice

Starting from potential output, if consumer confidence increases and consumers decide to spend more, then this will generate a(n) ________ gap and inflation will ________.

• A)recessionary; increase
• B)recessionary; decrease
• C)expansionary; decrease
• D)expansionary; increase

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Definitions:

Neurons

Specialized cells in the nervous system that transmit information throughout the body using electrical and chemical signals.

Polypeptide

A polypeptide is a chain of amino acids linked by peptide bonds, which can function as hormones, enzymes, or structural components of cells.

Amino Acid

The building blocks of proteins, consisting of a basic amino group, an acidic carboxyl group, and a side chain specific to each type of amino acid.

Carboxyl Group

A functional group consisting of a carbon atom double-bonded to an oxygen atom and single-bonded to a hydroxyl group (-COOH).