A rightward shift in the aggregate demand curve can be caused by an increase in:
A) the price level.
B) business investment spending.
C) taxes.
D) production costs.

Question

Quizplus · Accepted Answer

An increase in business investment spending can lead to an increase in aggregate demand as firms increase their production and hiring, leading to more spending in the economy. The other options listed would either lead to a leftward shift in the aggregate demand curve (A, C) or have no direct impact on the curve (D).

A Rightward Shift in the Aggregate Demand Curve Can Be