Starting from Potential Output, If Consumer Confidence Increases and Consumers

question 86

Multiple Choice

Starting from potential output, if consumer confidence increases and consumers decide to spend more, then this will shift the ______ curve to the right and generate ______.

• A)aggregate demand; a recessionary output gap
• B)aggregate supply; a recessionary output gap
• C)aggregate demand; an expansionary output gap
• D)aggregate supply; an expansionary output gap

---

Definitions:

Life Expectancy

The average period that an individual is expected to live, often calculated from the time of birth, based on statistical averages.

Canadian Life

The experiences, culture, and living standards of individuals residing in Canada, reflecting the country's diverse society and landscapes.

Other Countries

Refers to nations different from one’s own, often mentioned in discussions involving international relations, cultural exchanges, and comparative analyses.

Social Exclusion

Is achieved by creating barriers so that certain social opportunities and positions are not open to all.