Which of the following would indicate the beginning of an expansionary phase in an economy?
A) a minor increase in the number of new firms
B) a decline in stock market prices
C) an improvement in consumer confidence
D) a slowdown in housing construction
E) a decrease in the number of orders for new equipment

Question

Quizplus · Accepted Answer

An improvement in consumer confidence indicates that consumers are feeling more optimistic about the economy, which typically leads to increased spending and investment. This is a key factor in the beginning of an expansionary phase. The other options either have little to no relation to the beginning of an expansionary phase, or actually suggest a potential slowdown in the economy (such as a decline in stock market prices or a slowdown in housing construction).

Which of the Following Would Indicate the Beginning of an Expansionary