Factors that shift the AD Curve include ________.
A)government purchases
B)autonomous investment
C)taxes
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

All of the listed options, government purchases, autonomous investment, and taxes, can shift the aggregate demand (AD) curve. When government purchases increase or taxes decrease, there will be an increase in AD, shifting the curve to the right. On the other hand, when government purchases decrease or taxes increase, there will be a decrease in AD, shifting the curve to the left. Similarly, an increase in autonomous investment will increase AD, while a decrease in autonomous investment will decrease AD, shifting the curve accordingly.

Factors That Shift the AD Curve Include ________