Which of the following illustrates an optimistic expectation of the people about the economy?
A)A movement to the right along the aggregate demand curve
B)A rightward shift of the aggregate demand curve
C)A leftward shift of the aggregate demand curve
D)A movement to the left along the aggregate demand curve
E)A flatter slope of the aggregate demand curve

Question

Quizplus · Accepted Answer

A rightward shift of the aggregate demand curve indicates that people have optimistic expectations about the economy and are willing to spend more. This shift could be caused by factors such as an increase in consumer confidence, a decrease in taxes, or an increase in government spending.

Which of the Following Illustrates an Optimistic Expectation of the People