If every household in Australia won a lottery which gave each of them an extra $50 000 to spend,the:
A)aggregate supply curve would shift to the right.
B)aggregate supply curve would shift to the left.
C)general price level would rise, causing a movement up the aggregate demand curve.
D)aggregate demand curve would shift to the left.
E)aggregate demand curve would shift to the right.

Question

Quizplus · Accepted Answer

An increase in household income would lead to an increase in consumption, shifting the aggregate demand curve to the right.

If Every Household in Australia Won a Lottery Which Gave