Which of the following would cause a rightward shift of the AD curve?
A) an increase in the price level
B) a decrease in the price level
C) an increase in imports
D) a decrease in the quantity of money available in the economy
E) an increase in government purchases of goods and services

Question

Quizplus · Accepted Answer

An increase in government purchases of goods and services would shift the AD curve to the right as it increases spending and economic activity. A decrease in the quantity of money available in the economy would shift the AD curve to the left as it reduces spending and economic activity. Changes in the price level or imports do not directly shift the AD curve but affect it through changes in consumer and producer behavior.

Which of the Following Would Cause a Rightward Shift of the AD