If the wealth of consumers increases substantially,this would shift
A)the aggregate supply curve outward
B)the aggregate demand curve outward
C)the aggregate demand curve inward
D)the aggregate supply curve inward
E)both the aggregate demand and supply curves inward

Question

Quizplus · Accepted Answer

When the wealth of consumers increases, they have more money to spend, leading to an increase in consumption spending. This will cause an increase in aggregate demand, hence shifting the aggregate demand curve outward.

If the Wealth of Consumers Increases Substantially,this Would Shift