Which of the following causes the aggregate demand curve to shift?
A)Changes in the amount of labor
B)Changes in the amount of capital
C)Changes in technology
D)fiscal and monetary policies

Question

Quizplus · Accepted Answer

Fiscal and monetary policies are the main factors that cause the aggregate demand curve to shift. Fiscal policy involves changes in government spending and taxation levels, while monetary policy refers to changes in the money supply and interest rates by the central bank. When these policies are used to stimulate consumer and business spending or to control inflation, they can shift the aggregate demand curve. Changes in labor, capital, and technology affect the supply-side of the economy and are not considered factors that shift the aggregate demand curve.

Which of the Following Causes the Aggregate Demand Curve to Shift