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:

Household Density

measures the number of people living within a household or residential unit, often reflecting living conditions and space utilization.

Prison Environment

The physical and social conditions within a correctional facility, influencing the behavior and mental health of inmates.

Gender Differences

The distinctions in characteristics, behaviors, and roles traditionally associated with being male or female in a given society.

Western Societies

Societies primarily located in the Western Hemisphere, characterized by a particular set of cultural, economic, and political systems.