A change in consumers' expectations about the future will shift both the aggregate expenditure curve and the aggregate demand curve.

Question

Quizplus · Accepted Answer

Consumers' expectations about the future can affect their willingness to spend, which in turn can shift the aggregate expenditure curve. This shift in aggregate expenditure will also cause a shift in the aggregate demand curve. Therefore, both curves will be affected by changes in consumers' expectations about the future.

A Change in Consumers' Expectations About the Future Will Shift