Which of the following can cause the AD curve to shift?

The AD (Aggregate Demand) curve represents the total quantity of goods and services demanded across all levels of an economy at various price levels. It can shift due to various factors that influence spending behavior within the economy.

The clarity around consumer confidence and government spending is essential in understanding why this is the correct choice. Changes in consumer confidence directly affect households' willingness to spend. When consumers feel more confident about their financial future, they are more likely to increase their spending, thereby increasing aggregate demand. Conversely, if consumer confidence falls, spending typically decreases.

Similarly, government spending has a significant impact on aggregate demand. An increase in government expenditures, such as on infrastructure or social programs, can directly increase overall demand in the economy. When governments invest in the economy, it not only stimulates additional demand through direct purchases but can also indirectly influence consumer spending through increased job creation and income.

On the other hand, changes in the supply of resources, technology, or the labor market primarily affect the AS (Aggregate Supply) curve rather than AD. While these factors can indirectly influence aggregate demand through their effects on economic output and productivity, they do not directly lead to shifts in the AD curve as changes in consumer confidence and government spending do.

This understanding of the components that