At a given price level,an increase in expected profits and business confidence will shift the aggregate demand curve:
A)rightward.
B)leftward.
C)both.
D)none of the above.

Question

Quizplus · Accepted Answer

An increase in expected profits and business confidence will lead to an increase in investment spending and consumption, leading to an increase in aggregate demand. This shift in the demand curve would be represented by a movement to the right.

At a Given Price Level,an Increase in Expected Profits and Business