A sudden increase in confidence by the business community could best be represented by
A)The consumption curve shifting downward.
B)The AS curve shifting downward.
C)An aggregate expenditure curve shifting upward.
D)An aggregate expenditure curve shifting downward.

Question

Quizplus · Accepted Answer

An increase in business confidence typically leads to higher investment and possibly higher consumption as businesses expand and hire more workers. This would be represented by an aggregate expenditure curve shifting upward, indicating an increase in overall spending in the economy.

A Sudden Increase in Confidence by the Business Community Could