Figure 13-1 -Refer to Figure 13-1.Ceteris paribus,an increase in households' expectations of their future income would be represented by a movement from A)AD₁ to AD₂. B)AD₂ to AD₁. C)point A to point B. D)point B to point A.

Question

Quizplus · Accepted Answer

An increase in households' expectations of their future income would lead to an increase in consumption demand. This would cause the aggregate demand curve to shift rightward, from AD₁ to AD₂.

Figure 13-1 -Refer to Figure 13-1.Ceteris Paribus,an Increase in Households' Expectations of Households