An increase in government spending initially and primarily shifts which curve in what direction?
A) aggregate demand to the right
B) aggregate demand to the left
C) aggregate supply to the right
D) aggregate supply to the left

Question

Quizplus · Accepted Answer

An increase in government spending shifts the aggregate demand curve to the right as it increases the overall demand for goods and services in the economy. This is because government spending creates more jobs and income, leading to higher spending by consumers and businesses.

An Increase in Government Spending Initially and Primarily Shifts Which