How does optimism affect consumer spending


Assignment:

Consider the following headline: U.S. consumer spending up 0.4 percent in January while income increased 0.3 percent

Published March 03, 2014

Associated Press

According to the NBC Learn clip Consumer Confidence Hits Five-Year High, how does optimism and certainty about the economy affect consumer spending? Synthesizing the concepts of consumer confidence and aggregate demand, describe how spending can bring an economy out of a recessionary gap and whether increased spending is justified even if incomes don't keep up.

NOTE: Responses are to be in a separate paragraph for each part using proper grammar, sentence structure, capitalization, and spelling. All sources, including the textbook, must be properly cited with quotation used for direct quotes. Responses must be primarily in your own words using any sources to support your position.

300 words minimum

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Microeconomics: How does optimism affect consumer spending
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