Which of the following can shift the aggregate demand curve?

The aggregate demand curve represents the total quantity of goods and services demanded across all levels in an economy at various price levels. Shifts in this curve can occur due to various factors that influence overall demand.

Changes in consumer confidence are a significant factor that can shift the aggregate demand curve. When consumer confidence is high, individuals tend to spend more on goods and services, stimulating demand. Conversely, when consumer confidence decreases, spending tends to decline, which can reduce aggregate demand. This psychological aspect plays a vital role in influencing consumption patterns, as consumers base their decisions on perceptions of economic stability, job security, and future income expectations.

Production costs, changes in the labor market, and technological advancements primarily affect the aggregate supply curve by influencing how much can be produced at a given price level. While these factors may impact overall economic performance, they do not directly cause shifts in aggregate demand in the same way that changes in consumer confidence do. Hence, consumer confidence is the clear driver that specifically affects the aggregate demand curve.