Answer the question based on the following list of factors that are related to the aggregate demand curve. Changes in which two of the factors in the list above would most likely cause a shift in aggregate demand due to a change in consumer spending?
A) 1 and 3
B) 2 and 4
C) 5 and 10
D) 8 and 9

Question

Answer the question based on the following list of factors that are related to the aggregate demand curve.  Changes in which two of the factors in the list above would most likely cause a shift in aggregate demand due to a change in consumer spending?
A) 1 and 3 
B) 2 and 4 
C) 5 and 10 
D) 8 and 9

Quizplus · Accepted Answer

Factors 2 (consumer wealth) and 4 (consumer expectations) are related to consumer spending, and therefore a change in either of these factors would cause a shift in aggregate demand. An increase in consumer wealth would lead to an increase in spending, which would shift the aggregate demand curve to the right. Similarly, an increase in consumer expectations about the future would lead to increased spending, shifting the aggregate demand curve to the right.

Answer the Question Based on the Following List of Factors