The aggregate demand (AD)curve shifts to the right.This is a result of
A)total expenditures increasing at a given price level.
B)total expenditures decreasing at a given price level.
C)the real balance effect.
D)the interest rate effect
E)b and c

Question

Quizplus · Accepted Answer

The AD curve shifts to the right when total expenditures increase at a given price level. This can be due to factors such as increased consumer confidence, government spending, or expansionary monetary policy, all of which lead to increased demand for goods and services at all price levels. The real balance effect, interest rate effect, and other factors may also play a role, but the primary driver of a rightward shift in the AD curve is an increase in total expenditures.

The Aggregate Demand (AD)curve Shifts to the Right