Which of the following typically indicates a robust economy?

Study for the Mariemont HS Business Foundations Test. Utilize flashcards and multiple choice questions with helpful hints and explanations for better preparation. Get ready for success!

High economic growth is a strong indicator of a robust economy. When an economy is experiencing high growth, it generally means that there is an increased production of goods and services, leading to higher income levels and improved living standards for individuals within that economy. This growth is often reflected in rising Gross Domestic Product (GDP) figures, which are a key measure of economic performance.

In a robust economy, businesses tend to invest more, consumers spend more, and overall economic activity is vibrant, creating a positive cycle that fuels further growth. This strong performance typically correlates with lower unemployment rates and steady or increasing consumer confidence, as individuals feel more secure in their jobs and are willing to spend.

The other options do not indicate a robust economy. For example, high unemployment would suggest that many people are unable to find work, which is the opposite of economic strength. Low inflation might be a sign of stability but does not necessarily denote robust economic growth on its own. Decreasing demand would similarly indicate economic weakness because it implies that consumers and businesses are spending less, which can lead to further economic decline.

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