Which of the following would shift the aggregate demand curve to the right?
A) Increases in government purchases,investment spending,autonomous consumption,taxes,or the money supply
B) Increases in government purchases,investment spending,autonomous consumption,or the money supply
C) Decreases in government purchases,investment spending,autonomous consumption,taxes,or the money supply
D) Increases in government purchases,investment spending,autonomous consumption or taxes
E) Decreases in government purchases or investment spending,and increases in autonomous consumption,taxes,or the money supply.

Question

Quizplus · Accepted Answer

Increases in government purchases, investment spending, autonomous consumption, or the money supply can shift the aggregate demand curve to the right as they increase the total amount of spending in the economy. However, a decrease in government purchases or investment spending would have the opposite effect and shift the aggregate demand curve to the left. Similarly, an increase in taxes would decrease disposable income and reduce consumption spending, shifting the aggregate demand curve to the left. Therefore, choices A, C, D, and E are incorrect.

Which of the Following Would Shift the Aggregate Demand Curve