Suppose the price level is rising and it is widely forecast to rise even further.This forecast might cause __________ of some consumption plans,resulting in __________ the AD curve.
A) postponement; a rightward shift of
B) postponement; a leftward shift of
C) acceleration; a rightward shift of
D) acceleration; movement down along

Question

Quizplus · Accepted Answer

If the price level is rising and expected to rise further, consumers might accelerate their consumption plans to avoid higher prices in the future, leading to an increase in aggregate demand, which is represented by a rightward shift of the AD curve.

Suppose the Price Level Is Rising and It Is Widely