Which of the following would both shift aggregate demand right?
A)the price level decreases and government expenditures increase
B)the price level decreases and the government repeals an investment tax credit
C)government expenditures increase and the money supply increases
D)None of the above are correct.

Question

Quizplus · Accepted Answer

An increase in government expenditures and an increase in the money supply both lead to an increase in aggregate demand, shifting it to the right. Option A is incorrect because a decrease in the price level would shift the aggregate demand curve leftward, not rightward. Option B is incorrect because repealing an investment tax credit would decrease investment, decreasing aggregate demand and shifting the curve leftward. Option D is incorrect because C is a correct answer.

Which of the Following Would Both Shift Aggregate Demand Right