Consumer confidence in the economy has taken a nosedive as prices climb higher due to rising inflation, potentially indicating that the U.S. is on the road to a recession. This video looks at how the government collects data on consumer confidence while also examining the ways that low economic expectations can further fuel inflation.
Questions:
- Why does the government collect data on consumer confidence? What sort of questions do they ask participants?
- How can declining consumer confidence potentially drive inflation even higher?
