Question

Do you expect consumer confidence and business expectations to improve in the months ahead? Which way...

Do you expect consumer confidence and business expectations to improve in the months ahead? Which way will the AD curve shift between now and the end on 2020? Why?

Homework Answers

Answer #1

yes the consumer confidence and business expectation should improve in the month ahead. The covid-19 pandemic has put the economy on the standstill, but medical research suggests that the worst part is behind us. Most of the countries have been able to flatten the infections curve and are slowly lifting the lockdowns. Thus the economic ctivity is supposed to improve as more businesses start again and consumer start purchasing and release the pent up d emand.

All of this will increase demand and shift the AD curve to the right.

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