How do consumers’ feelings about the economy help contribute to growth?

How do consumers’ feelings about the economy help contribute to growth?

A) Positive consumer attitudes influence spending habits.

B) Positive consumer attitudes increase job prospects.

C) Positive consumer attitudes inspire increased production.

D) Positive consumer attitudes can end a depression.

Answer: A) Positive consumer attitudes influence spending habits.

Consumers are well-known opinion leaders who foster consumer confidence and economic attitudes that are key to facilitating economic growth. Consumers ’ perceptual beliefs about the economic circumstances globally lead to behaviour intentions where in this case increased spend on goods and services. Consumers’ expenditure or consumption is also a part of GDP contributing to a large extent and this increase does help in increasing demand or the purchasing of goods and services.

Higher demand in turn increases new productions more investment in technological advancement and employment of more people to fulfill the increasing demand of customers. They argue that the cycle of consumer spending, production and employment Essay on the Economic Perspectives continues to fuel the overall economic growth. On the one hand, positive consumer attitudes imply a positive perception toward income expenditure on goods and services and thus contributes towards economic growth while negative consumer attitudes mean that the spending is negative and hence is detrimental to the growth of the economy. Thus, it becomes clear that bases attitude and confidence are critical determinants of spending and an important ingredient to economic growth.