Question

How does increased confidence about American made electronic products affect the American economy by shifting the aggregate demand (AD) curve?

a. It shifts the AD curve to the right.
b. It shifts the AD curve to the left.
c. It has no effect on the AD curve.
d. It depends on other economic factors.

Answer 1

Increased confidence about American made electronic products affects the American economy by shifting the aggregate demand (AD) curve to the right.

Step-by-step explanation:

Increased confidence about American made electronic products affects the American economy by shifting the aggregate demand (AD) curve to the right. When consumer confidence in American products increases, people are more likely to buy them, leading to an increase in consumer spending. This increase in spending shifts the AD curve to the right, resulting in a higher quantity of output and a higher price level.