An increase in which of the following (assuming the increase was not due to a price level change) shifts aggregate demand to the right?
A)interest rates
B)taxes
C)government surplus
D)net exports

Question

Quizplus · Accepted Answer

An increase in net exports means that exports are increasing or imports are decreasing, which would increase aggregate demand. Therefore, the answer is D. The other options would shift aggregate demand to the left. Higher interest rates would discourage borrowing and spending, decreasing aggregate demand. Taxes and government surplus both decrease disposable income and reduce consumption expenditures, decreasing aggregate demand.

An Increase in Which of the Following (Assuming the Increase