Which of the following will shift the AD curve to the right?
A) an increase in wealth
B) pessimism about the economy
C) a supply shock
D) a decrease in productivity

Question

Quizplus · Accepted Answer

An increase in wealth will shift the AD curve to the right because it will increase consumer spending, which is a component of aggregate demand. Pessimism about the economy, a supply shock, and a decrease in productivity would all decrease consumer spending and shift the AD curve to the left.

Which of the Following Will Shift the AD Curve to the Right