From 2001 to 2005 there was a dramatic rise in the value of houses. If this rise made homeowners feel wealthier, then it would have shifted aggregate
A)demand right.
B)demand left.
C)supply right.
D)supply left.

Question

Quizplus · Accepted Answer

When homeowners feel wealthier due to a rise in the value of their houses, they are likely to spend more. This increase in spending shifts the aggregate demand curve to the right, as it reflects a higher overall demand for goods and services in the economy.

From 2001 to 2005 There Was a Dramatic Rise in the Value