If consumers become more optimistic about their future economic well-being, we would expect
A) the aggregate demand curve to shift to the left.
B) the aggregate demand curve to shift to the right.
C) a movement to the left along the aggregate demand curve.
D) a movement to the right along the aggregate demand curve.
E) the aggregate demand curve to be unchanged, but the aggregate supply curve to shift to the right.

Question

Quizplus · Accepted Answer

An increase in consumer optimism about future economic well-being typically leads to more spending and investments, which results in an increase in aggregate demand. This, in turn, would shift the aggregate demand curve to the right.

If Consumers Become More Optimistic About Their Future Economic Well-Being