Aggregate demand changes in response to which factors of the following factors?
A)changes in input prices
B)changes in the number of firms in an industry
C)changes in taxes on businesses
D)changes in monetary and fiscal policy

Question

Quizplus · Accepted Answer

Aggregate demand changes in response to changes in monetary and fiscal policy, such as changes in interest rates, government spending, and tax policies. Changes in input prices and the number of firms in an industry affect the supply side of the economy and can impact aggregate supply, but not aggregate demand. Similarly, changes in taxes on businesses can impact the supply side of the economy, but not aggregate demand.

Aggregate Demand Changes in Response to Which Factors of the Following