Exhibit 24-4
-The AD curve shifts to the right as a result of
A)an increase in government purchases.
B)an increase in taxes.
C)a downshift in foreign demand.
D)a downshift in consumption.
E)a monetary policy shift to a lower inflation target.

Question

Exhibit 24-4 
-The AD curve shifts to the right as a result of
A)an increase in government purchases. 
B)an increase in taxes. 
C)a downshift in foreign demand. 
D)a downshift in consumption. 
E)a monetary policy shift to a lower inflation target.

Quizplus · Accepted Answer

An increase in government purchases shifts the AD curve to the right.

Exhibit 24-4 -The AD Curve Shifts to the Right as a Result