Question

For a given level of inflation, if a rise in the stock market makes consumers more willing to spend (the wealth effect), then the _____ shifts _____.

Answer 1

Answer:

aggregate demand curve; right

Explanation:

Inflation can be regarded as

when the level of price of goods/service increases for consumer to buy, it can be measured as a result of change in price. There are four types of level of inflation which are creeping, walking as well as galloping, and hyperinflation, which are measured base on speed. It should be noted that For a given level of inflation, if a rise in the stock market makes consumers more willing to spend (the wealth effect), then the aggregate demand curve shift right