Why might household and firms confidence and expectations change leading to deviations in output from trend? Is

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Why might household and firms’ confidence and expectations change leading to deviations in output from trend? Is there any way in which changes in confidence can be measured to provide an indicator of changes in economic activity?

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Economics

ISBN: 9781473768543

5th Edition

Authors: Gregory Mankiw, Mark P. Taylor

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Question Posted: Apr 26, 2024 02:01 AM

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Why might household and firms confidence and expectations change leading to deviations in output from trend? Is

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Household and firms confidence and expectations play a crucial role in shaping economic activity and can lead to deviations in output from the trend Changes in confidence can affect consumer spending ...View the full answer

Economics

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