Which of the following could cause a rightward shift in the aggregate demand (AD)curve?
A)an increase in induced imports
B)an increase in desired investment
C)an increase in the net tax rate
D)an increase in desired saving
E)an increase in the price level

Question

Quizplus · Accepted Answer

An increase in desired investment would cause a rightward shift in the AD curve as it increases the level of overall spending in the economy. The other options listed would cause a leftward shift in the AD curve as they decrease overall spending in the economy.

Which of the Following Could Cause a Rightward Shift in the Aggregate