ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -It can be used to monitor output growth and to anticipate turning points in economic activity. Numbers above 100 suggest an increased confidence in near future business performance, and numbers below 100 indicate pessimism towards future performance.

Detailed explanation-2: -The improvement of consumer confidence leads to an increase in the consumption function. This is because the improvement in consumer confidence leads to increased consumer spending; hence, increasing the consumer functions.

Detailed explanation-3: -Consumer confidence surveys are key indicators into the overall health of the economy. When people feel confident about the stability of their incomes it influences their spending and saving activities.

Detailed explanation-4: -What’s it: Business confidence describes how optimistic or pessimistic businesses are about their current and future operating and financial conditions. Several factors influence it, including economic conditions, consumer confidence, demand, and operating conditions.