GROWTH DEVELOPMENT CHILD
DEVELOPMENT AND LEARNING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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recession
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Growth
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boom
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Decline
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Detailed explanation-1: -The increase in consumer spending in turn helps the economy sustain its expansion. If for some reason consumer confidence declines, consumers become less certain about their financial prospects, and they begin to spend less money; this in turn affects businesses as they begin to experience a decrease in sales.
Detailed explanation-2: -In the expansionary phase, the economy experiences growth over two or more consecutive quarters. Interest rates are typically lower, employment rates rise, and consumer confidence strengthens. The peak phase occurs when the economy reaches its maximum productive output, signaling the end of the expansion.
Detailed explanation-3: -How did increased consumer confidence lead to a growing economy? It encouraged spending.
Detailed explanation-4: -expansion (recovery) is when output is increasing, unemployment begins to fall and later inflation begins to rise.