Which factor will cause the aggregate demand curve to shift to the right?
A) reduction in the aggregate price level
B) reduction in personal income taxes
C) increase in interest rates
D) decrease in foreign income

Question

Quizplus · Accepted Answer

Reduction in personal income taxes will increase disposable income which in turn will increase consumption expenditure leading to an increase in aggregate demand.

Which Factor Will Cause the Aggregate Demand Curve to Shift