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:

Education Of Women

The process and practice of teaching and educating females, often aimed at empowering women and promoting gender equality.

Industrialization

The development of industries in a country or region on a wide scale, transforming economies from primarily agricultural to manufacturing and production-based.

Overpopulation

A condition where an area's population exceeds its environmental carrying capacity, leading to environmental degradation and diminished quality of life.

Bourgeoisie

The social class that owns the means of production in a capitalist society, typically contrasted with the working class or proletariat.