_____________ shifts to the right if fiscal policy eases, net exports rise, or monetary policy eases.
A) The aggregate demand function
B) Unemployment
C) Stagflation
D) Inventories

Question

Quizplus · Accepted Answer

The aggregate demand function shifts to the right when there is an increase in overall demand, which can be caused by easier fiscal policy (such as tax cuts or increased government spending), an increase in net exports, or easier monetary policy (such as lower interest rates). These factors boost spending and investment, thereby increasing aggregate demand.

_____________ Shifts to the Right If Fiscal Policy Eases, Net