• It is customary for the News media to report about consumer confidence and investor confidence while discussing the national economy. How do you think the confidence of the economic agents affect the economy? From personal or work experience, state factors that could cause increase in consumer spending and investor investment. Do consumer and investor confidence trend reports affect your spending pattern? Explain.
• The government purchases component of GDP does not include spending on transfer payments such as Social Security. GDP does not also include the value of used goods that are resold. Do you think such exclusion make GDP a less informative measure of economic well-being? What other production of goods and services do you think are excluded from the GDP? What is the impact of such exclusion on the economic welfare?

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Consumer and Investor Confidence Impact on the Economy Consumer and investor confidence play crucial roles in shaping economic activity When confidenc... View the full answer