Asked by Isaac Rojas on May 16, 2024
Verified
Which of the following would indicate the beginning of an expansionary phase in an economy?
A) A minor increase in the number of new firms
B) A decline in stock market prices
C) An improvement in consumer confidence
D) A slowdown in housing construction
E) A decrease in the number of orders for new equipment
Expansionary Phase
A period within the business cycle where economic activity, including production, sales, and employment, is growing.
Consumer Confidence
A statistical measure that reflects the overall economic health as perceived by consumers, based on their spending and saving habits.
Stock Market
A public marketplace for buying and selling shares of publicly held companies, reflecting the investment climate and economic health.
- Learn about the aspects of economic swings, with a focus on downturns and periods of growth and their evidences.
Verified Answer
LW
Lemar WhiteMay 21, 2024
Final Answer :
C
Explanation :
An improvement in consumer confidence would suggest that consumers feel more optimistic about the state of the economy and are more willing to spend money, indicating the beginning of an expansionary phase.
Learning Objectives
- Learn about the aspects of economic swings, with a focus on downturns and periods of growth and their evidences.