An expected increase in the prices of consumer goods in the near future will
A) decrease (or shift left) in aggregate demand now.
B) increase (or shift right) in aggregate demand now.
C) decrease in the quantity of real output demanded (or movement up along AD).
D) increase in the quantity of real output demanded (or movement down along AD).

Question

Quizplus · Accepted Answer

An expected increase in the prices of consumer goods in the near future can lead consumers to buy more now before prices go up, thus increasing (or shifting right) aggregate demand now.

An Expected Increase in the Prices of Consumer Goods in the near Future