An increase in confidence will cause
A)AD to increase (move to the right).
B)AD to decrease (move to the left).
C)AS to increase (move to down and to the right).
D)AS to decrease (move to up and to the left).

Question

Quizplus · Accepted Answer

An increase in confidence will result in consumers and businesses becoming more optimistic about the economy, leading to an increase in spending and investment. This increase in spending and investment will shift the aggregate demand (AD) curve to the right.

An Increase in Confidence Will Cause