Respuesta :
If the consumer demand rises, then aggregate demand shifts right, making inflation higher than otherwise.
What is aggregate Demand?
The increased supply for finished goods and services in an economy during a specific time is known in macroeconomics as aggregate demand, also known as domestic final demand. Effective demand is a generic term for this, whereas other times this term is used to distinguish between them. This is a nation's demand because of its gross domestic production.
Consumer spending grows as consumer confidence rises. An rise in the demand for goods and services is indicated by a movement to the right in the aggregate demand curve. Manufacturers may expand output in response to rising consumer spending, banks may offer more credit, and the housing market may anticipate more home sales.
Hence, if the consumer demand rises, then aggregate demand shifts right, making Inflation higher than otherwise.
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