Figure 24-1
-Refer to Figure 24-1.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

Figure 24-1 
-Refer to Figure 24-1.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.

Quizplus · Accepted Answer

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

Figure 24-1 -Refer to Figure 24-1.Ceteris Paribus,an Increase in Households' Expectations of Households