Importance of Consumer Confidence : LUSENET : Economic History (and Related Observations) : One Thread

Being a relatively new student in economics, can you give me some ideas on where to find information on the effects on aggregate income and output with changes in consumer confidence. For example if consumer confidence is high, how does this relate to aggregate income and output? Many thanks for any advice or suitable websites. Regards Lynda Woodman (Trying to be) Economics Student

-- Lynda Woodman (, September 01, 2000


It is basically supply and demand. People want more, so more is made. This is the same with aggregate income and output. In order for things to be sold consumers need to have confidence in the product or the producer. For example,on the internet there are many shops were you can buy things using credit cards. If everyone feels that the internet is a safe and easy way to buy things, and have confidence in it, then more purchases will be made on the internet. This can also be applied to intercontinental trade. If one country trusts another country and feels that the other country can help them by sending good supplys, then by all means they will try to trade. However, if one country does not trust another, then they will not want to trade with them because they are not confident. I hope this helps you.

-- abbey (, February 06, 2001.

Iam a girl who is not confidence!

-- joy lee (, March 21, 2003.

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