Westville, a small developed country, is experiencing a very high rate of inflation. Roma Anderson, a market research analyst, thinks that the high level of inflation is due to an acute shortage of goods available in the economy. According to her, the government should use expansionary fiscal policies to boost the economy. Meanwhile, Robert Simpson, a member of the finance ministry, is of the opinion that the high level of inflation is the result of excessive household spending. He suggests that the government should increase personal income tax rates to curb consumption demand. Which of the following, if true, will strengthen Robert's claim that high consumer spending is the cause of high inflation? OA· The number of discouraged workers in Westville has increased this year. OB. One of Westville's leading trading partners was recently hit by a severe recession. Oc、 The gender wage gap in westville has increased substantially in the last few years. OD. Leading firms producing consumer durables have reported a decline in profits in recent times. OE. There is consensus among leading economists and industry experts that the output gap in Westville is currently negatuve

There are two different people who have two different views for the increasing inflation. Robert's claim that the reason behind high inflation is the high consumer spending will be strengthened if there is a consensus among leading economists and the industry experts that the output gap in Westville is negative. This means that the actual output is less than the potential output and so, the consumer spending will increase, leading to the inflation.