Question

Explain the relationship between consumer expectations and economic performance. Explain how a person can be employed and still be living under the poverty threshold.

Answer 1

If a consumer believe that price of good will be higher in future he will prefer to buy it now having profit in future then he or she have positive atitude about the future
hope it helps

Answer 2

The relationship between consumer expectations and economic performance can be explained easily.The expectations of changes in income can lead to a reduction in confidence and as a result there is a fall in spending of income. An improvement in consumer expectations about the health of the economy will increase confidence and planned spending.Similarly, If a consumer believes that the price of the good will be higher in the future he is more likely to purchase the good now.