If consumer confidence rises,then aggregate demand shifts
A)right,making inflation higher than otherwise.
B)right,making inflation lower than otherwise.
C)left,making inflation higher than otherwise.
D)left,making inflation lower than otherwise.

Question

Quizplus · Accepted Answer

When consumer confidence rises, individuals are more likely to spend money and make purchases, increasing aggregate demand. This shift to the right can lead to higher inflation than would have occurred otherwise.

If Consumer Confidence Rises,then Aggregate Demand Shifts