Which of the following would cause a rightward shift of the aggregate demand curve?
A) an increase in planned investment
B) a drop in the price level
C) a rise in the price level
D) a decrease in autonomous consumption

Question

Which of the following would cause a rightward shift of the aggregate demand curve?  
A) an increase in planned investment 
B) a drop in the price level 
C) a rise in the price level 
D) a decrease in autonomous consumption

Quizplus · Accepted Answer

An increase in planned investment would increase aggregate demand because it would increase the level of spending in the economy. A drop in the price level (B) would actually cause a leftward shift of the aggregate demand curve because it would decrease spending. A rise in the price level (C) would not cause a shift of the aggregate demand curve, but rather a movement up along the curve. A decrease in autonomous consumption (D) would cause a leftward shift of the aggregate demand curve because it would decrease overall spending in the economy.

Which of the Following Would Cause a Rightward Shift of the Aggregate