If consumers' confidence in the economy rises
A) aggregate demand will shift leftward and the price level will rise.
B) aggregate demand will shift leftward and the price level will fall.
C) aggregate demand will shift rightward and the price level will rise.
D) aggregate demand will shift rightward and the price level will fall.

Question

Quizplus · Accepted Answer

If consumers' confidence in the economy rises, this means they are more willing to spend and invest. This leads to an increase in aggregate demand, and the AD curve shifts rightward. As a result, the price level will also rise.

If Consumers' Confidence in the Economy Rises