Which of the following will cause consumption, and as a result, aggregate demand, to shift to the right?
A)an optimistic business forecast of future income growth
B)increased consumer wealth
C)an increase in consumer confidence
D)all of the above

Question

Which of the following will cause consumption, and as a result, aggregate demand, to shift to the right?
A)​an optimistic business forecast of future income growth
B)​increased consumer wealth
C)​an increase in consumer confidence
D)​all of the above

Quizplus · Accepted Answer

All of the above choices will cause consumption to increase, which will shift aggregate demand to the right. An optimistic business forecast of future income growth will encourage firms to invest more and hire more workers, increasing consumer income and spending. Increased consumer wealth will also lead to more spending, as people feel more financially secure. An increase in consumer confidence will similarly lead to increased spending, as people feel more positive about the economy and their own financial situation.

Which of the Following Will Cause Consumption, and as a Result