An increase in aggregate expenditures resulting from some factor other than a change in the price level is equivalent to
A)a rightward shift of the aggregate demand curve in the AD-AS model.
B)a leftward shift of the aggregate demand curve in the AD-AS model.
C)a movement downward along a fixed aggregate demand curve in the AD-AS model.
D)a decrease in aggregate supply in the AD-AS model.

Question

Quizplus · Accepted Answer

An increase in aggregate expenditures, not caused by a change in the price level, leads to a rightward shift of the aggregate demand curve, indicating higher demand at each price level.

An Increase in Aggregate Expenditures Resulting from Some Factor Other