How does an increase in consumer confidence typically affect the demand curve during an economic recovery?

When consumer confidence increases during an economic recovery, people feel more secure about their jobs and financial situations. This sense of security often leads them to spend more money on goods and services. As consumers buy more, the demand for these products rises, which shifts the demand curve to the right. For example, if a family feels confident about their income, they might decide to buy a new car instead of waiting, leading to higher demand for cars in the market. Overall, increased consumer confidence helps boost economic activity by encouraging more spending.