Which of the following results in the aggregate demand curve shifting rightward year after year?
A) a one-time increase in government expenditures on goods and services
B) inflation
C) growth in the quantity of money
D) a one-time tax cut

Question

Quizplus · Accepted Answer

Growth in the quantity of money leads to lower interest rates and increased investment spending, which in turn increases consumption and aggregate demand. Option A and D are one-time events that would only shift the aggregate demand curve temporarily, and option B would decrease aggregate demand by reducing consumers' purchasing power.

Which of the Following Results in the Aggregate Demand Curve