An improvement in consumer confidence will cause:
A) A movement down the aggregate demand curve.
B) The aggregate supply curve to shift to the right.
C) The aggregate demand curve to shift to the right.
D) The aggregate demand curve to shift to the left.

Question

Quizplus · Accepted Answer

An improvement in consumer confidence means that people are more willing to spend money on goods and services, which will increase the overall demand for goods and services in the economy. This will cause the aggregate demand curve to shift to the right, indicating an increase in the overall level of output and prices.

An Improvement in Consumer Confidence Will Cause