Changes in how confident people feel can really affect how much money they spend in the economy.
When people feel good about their jobs and money, they tend to buy more stuff. This rise in spending helps the economy grow. For example, if workers feel secure in their jobs, they might decide to buy new cars or take vacations.
On the other hand, when confidence drops, people spend less. A good example of this is during a recession, when many folks worry about losing their jobs. During tough times, they usually save more money and cut back on things that aren’t necessary. This drop in spending can slow down economic growth.
To sum it up:
Changes in how confident people feel can really affect how much money they spend in the economy.
When people feel good about their jobs and money, they tend to buy more stuff. This rise in spending helps the economy grow. For example, if workers feel secure in their jobs, they might decide to buy new cars or take vacations.
On the other hand, when confidence drops, people spend less. A good example of this is during a recession, when many folks worry about losing their jobs. During tough times, they usually save more money and cut back on things that aren’t necessary. This drop in spending can slow down economic growth.
To sum it up: