An increase in spending leads to a:
A)movement up and to the left along the same aggregate demand curve.
B)movement down and to the right along the same aggregate demand curve.
C)right shift of the aggregate demand curve.
D)left shift of the aggregate demand curve.

Question

Quizplus · Accepted Answer

An increase in spending would increase the demand for goods and services, leading to an increase in the aggregate demand. This results in a rightward shift of the aggregate demand curve.

An Increase in Spending Leads to A