Answer:
a. Aggregate Demand
Explanation:
When the consumers are confident about the economy their investment and consumption activities will increase and this increases the aggregate demand in the economy. The effect of America economic is aggregate demand shift right and the gdp increases
When the AD curve shifts to the right it increases the level of production and the average price level. When an economy gets close to potential output, the price will increase more than the output as the AD rises and aggregate demand curve only tends to shift to the left when total consumer spending declines and the reason behinde consumers spending less is because the cost of living is rising Answer:
a. Aggregate Demand
Explanation:
When the consumers are confident about the economy their investment and consumption activities will increase and this increases the aggregate demand in the economy.
The effect of America economic is aggregate demand shift right and the gdp increases
When the AD curve shifts to the right it increases the level of production and the average price level and aggregate demand curve only tends to shift to the left when total consumer spending declines and the reason behind consumers spending less is because the cost of living is rising
