Shifts in the aggregate demand curve are caused by
A) the wealth effect.
B) the interest rate effect.
C) money illusion.
D) changes in labor productivity.
E) changes in spending.

Question

Quizplus · Accepted Answer

Shifts in the aggregate demand curve are caused by changes in spending. This can be due to factors such as changes in consumer confidence, government spending, investment by businesses, and net exports. The other choices are effects or factors that can contribute to shifts in the aggregate demand curve, but ultimately, the direct cause of the shift is due to changes in spending.

Shifts in the Aggregate Demand Curve Are Caused by