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.When businesses feel good about the future,investment will be higher,resulting in a higher equilibrium level of output.

Question

Quizplus · Accepted Answer

A sudden increase in business confidence typically leads to increased investment, which shifts the aggregate expenditure curve upward, indicating a higher level of spending and output.

A Sudden Increase in Confidence by the Business Community Could