The failure of rising expectations is related to______________?
Correct answer: D. dissatisfaction based on relative deprivation
- A. a general rise in the standard of living for all segments of society
- B. a rapid decline in the standard of living
- C. false advertising and credit expansion
- D. dissatisfaction based on relative deprivation
Explanation
Rising expectations can produce frustration when people compare their situation with others and feel relatively deprived, even if their absolute living standard has improved. This is why dissatisfaction based on relative deprivation explains the failure of rising expectations.
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The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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