In the aggregate demand and aggregate supply framework, what is the immediate effect of an increase in consumer confidence?

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move the short-run aggregate supply curve leftwardcause the aggregate demand curve to shift rightwardcause the short-run aggregate supply curve to shift rightwardmove the aggregate demand curve leftwardno change in either curve

Explanation

An increase in consumer optimism boosts spending, which raises overall demand in the economy. This causes the aggregate demand curve to shift to the right, reflecting higher demand at every price level. The short-run aggregate supply curve remains unchanged initially.