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

Question

Quizplus · Accepted Answer

An increase in house prices would lead to an increase in wealth, which would lead to an increase in consumption spending. This increase in consumption spending would cause aggregate demand to shift to the right.

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