What happens to the aggregate demand curve when consumer confidence increases?

When consumer confidence increases, people feel more secure about their jobs and finances, leading them to spend more money. This increased spending is important because it boosts the overall demand for goods and services in the economy. As a result, the aggregate demand curve, which shows the total demand at different price levels, shifts to the right. For example, if a family decides to buy a new car because they feel confident about their income, this purchase contributes to higher demand in the car market and influences other related industries. Overall, greater consumer confidence leads to a stronger economy as more spending encourages businesses to produce and invest.