An increase in aggregate demand is shown by a
A) rightward shift the AD curve.
B) movement upward along the AD curve.
C) movement downward along the AD curve.
D) leftward shift the AD curve.

Question

Quizplus · Accepted Answer

An increase in aggregate demand would mean a higher level of demand for goods and services in an economy. This would cause an increase in the overall price level and output level. So, the aggregate demand curve would shift to the right to represent this increase in demand. Therefore, option A is the correct answer.

An Increase in Aggregate Demand Is Shown by a