Which of the following would shift aggregate demand to the right?
A) College graduates are having a difficult time finding jobs.
B) There is a decline in consumer confidence.
C) Stock market values increase by 20 percent.
D) A fall in the price level increases the value of real wealth.
E) The value of the dollar increases.

Question

Quizplus · Accepted Answer

An increase in stock market values would lead to an increase in wealth and confidence of consumers and firms, thus leading to an increase in consumer and investment spending, which would shift aggregate demand to the right.

Which of the Following Would Shift Aggregate Demand to the Right