Other things equal, an increase in consumer wealth will
A) increase aggregate supply.
B) increase aggregate demand.
C) reduce the price level.
D) reduce the money supply.

Question

Quizplus · Accepted Answer

An increase in consumer wealth means that consumers have more money to spend, which leads to an increase in aggregate demand. This is because they have greater purchasing power and are more likely to purchase goods and services.

Other Things Equal, an Increase in Consumer Wealth Will