From 2001 to 2005 there was a dramatic rise in the price of houses.If this rise made people feel wealthier,then it would have shifted
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 shift aggregate demand to the right as consumers have more disposable income to spend on goods and services, leading to an increase in overall demand.

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