Question

How would a significant increase in consumption and economic activity among a nation's consumers affect the

Answer 1

A significant increase in consumption and economic activity among a nation's consumers would decrease income inequality.

Option: A

Explanation:

A country's economy highly depends on consumer's behavior. If for certain reason the consumption and economic activity raises it will decrease the variation in income level. Strong economy promotes high purchasing capacity.

If the consumption level gets high more workers would be involved in economic activity which will strengthen nation's economy and Gross Domestic Production. On the other hand the unemployment will go down. Disparity in income level will also decreases due to high consumption rate and growth of economic activity.