A factor that shifts the aggregate demand curve for an economy is:
A)domestic factor prices.
B)the price level in the economy.
C)the price of resources imported by the economy.
D)technology.

Question

Quizplus · Accepted Answer

Technology shifts the aggregate demand curve by increasing productivity and leading to higher output levels. A higher level of output can lead to higher spending and an increase in aggregate demand. Domestic factor prices and the price of resources imported by the economy may impact the cost of production, but do not directly shift the aggregate demand curve. The price level in the economy is affected by aggregate demand, so it cannot be a factor that shifts the curve.

A Factor That Shifts the Aggregate Demand Curve for an Economy