Which of the following is the most accurate?
A) Any disturbance that lowers aggregate demand for domestic output shifts the DD schedule to the right.
B) Any disturbance that lowers aggregate demand for foreign output shifts the DD schedule to the left.
C) Any disturbance that raises aggregate demand for domestic output shifts the DD schedule to the right.
D) Any disturbance that raises aggregate demand for domestic output shifts the DD schedule to the left.
E) Any disturbance that lowers aggregate demand for domestic output shifts the DD schedule downward.

Question

Quizplus · Accepted Answer

An increase in aggregate demand for domestic output will shift the demand for domestic output curve (DD schedule) to the right, which means that at any given set of relative prices, there will be a higher quantity of domestic output demanded. This is because an increase in aggregate demand for domestic output means that there is more demand for goods and services produced within the domestic economy.

Which of the Following Is the Most Accurate