Starting from Potential Output, If Consumer Confidence Decreases and Consumers

question 43

Multiple Choice

Starting from potential output, if consumer confidence decreases and consumers decide to spend less, then this will shift the ______ curve to the left 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

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Definitions:

Organizational Politics

Refers to the activities carried out within organizations to acquire, develop, and use power and other resources to obtain one's preferred outcomes in a situation where there is uncertainty or disagreement.

Political Skill

An interpersonal style that manifests itself in being socially astute and engaging in behaviors that lead to feelings of confidence, trust, and sincerity.

Social Awareness

The ability to understand and respond to the feelings, needs, and concerns of others, including recognizing social cues and appropriately adapting behavior.

Empowerment

The process of giving individuals or groups more control, authority, and responsibility regarding their own lives or work.