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2 years ago

Suppose the consumer confidence index increases from 103 to 146. How does this change effect the AD/AS model

Business

1 answer:

Darina [25.2K]2 years ago

8 0

The AS curve shifts to the left.

The Consumer Confidence Index is an economic indicator published by various organizations in several countries. Simply put, rising consumer confidence is an indication of the economic growth that consumers are spending and an increase in consumption.

When the latest index exceeds 100, consumers will be more confident than in 1985. Below 100, consumers are less confident than they were then.

Consumer confidence is an economic indicator. It measures how confident consumers are about the general state of the economy. It also measures how confident people are about income stability. Their self-confidence influences not only their financial decisions but their spending activities.

Learn more about the consumer confidence index here:brainly.com/question/25122933

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Firlakuza [10]

Answer:

Constant Return to Scale

Explanation:

Based on the information given the numbers

suggest that between 100 and 110 units of output, the firm producing this output has CONSTANT RETURN TO SCALE.

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Therefore Constant returns to scale often occur when the output increase in exactly the same way or the same proportion as the factors of production.

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3 years ago

What do you think would happen to the expected return on stocks if investors perceived an increase in the volatility of stocks?

olya-2409 [2.1K]

Answer:

Higher is the correct answer.

Explanation:

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3 years ago

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ASHA 777 [7]

Answer: decreases

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Hence we can conclude that the right answer to the given problem is decrease.

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3 years ago

A drop in the market price of a firm's common stock will immediately affect its:

Illusion [34]

It will directly affect its market capital

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3 years ago

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asambeis [7]

-4.45%

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3 years ago