Figure 9-3 -Refer to Figure 9-3.What Might Be One of the Reasons

Multiple Choice

Figure 9-3

-Refer to Figure 9-3.What might be one of the reasons that aggregate demand has shifted from AD₀ to AD₁?

A) Consumers have lost faith in the economy, and as a result have begun buying fewer goods.
B) Governments have decreased tax rates.
C) Consumers' belief in the economy has increased, and as a result they have begun buying more goods.
D) Investors have become more optimistic about their profit prospects and therefore output and prices are higher.