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 prices leads consumers to buy more now to avoid higher future prices, shifting aggregate demand to the right.

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