Article Summary Although Growing at Only Half the Average Rate Following the Following

question 11

Multiple Choice

Article Summary
Although growing at only half the average rate following the seven previous recessions, consumer spending has increased 9 percent since the end of the 2007-2009 recession, and consumer confidence has been on the rise as household finances, the job market, and the housing market continue to improve. The Federal Reserve projects a 3% - 3.5% growth rate for the economy in 2014, up from the recent average of 2%. Debt payments have fallen to an average of 15.69% of after-tax income for households, the lowest level in 30 years, and lower debt payments leave households with more to spend on consumer goods.
Source: Neil Shah, "Pocketbooks Begin to Open As Household Wealth Grows," Wall Street Journal, June 25, 2013.

-Refer to the Article Summary.The increase in consumer spending discussed in the article summary was due in part to lower debt payments which have resulted in an increase in disposable income.The increase in consumption resulting from the increase in disposable income caused a(n) ________ the aggregate expenditure curve.

• A)movement up along
• B)movement down along
• C)downward shift of
• D)upward shift of

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Definitions:

Self-Regulation

An individual’s ability to prevent himself or herself from making a dominant, preferred or automatic response in order to perform a nondominant response, such as when a hungry person is served food at a restaurant but waits to eat until everyone at the table has been served.

Precursor

An element, condition, or event that precedes and indicates the approach of something.

Recognition Skills

are the abilities to identify and acknowledge information, objects, or situations based on previous experiences or knowledge.

Infants

Very young children or babies, typically those under one year of age, who are in the earliest stages of development.