Which of the following would cause an outward shift of aggregate demand?
A) an increase in interest rates
B) an increase in tax rates
C) the expectation of higher income
D) improvements in technology
E) an increase in imports

Question

Quizplus · Accepted Answer

The expectation of higher income would increase consumer confidence and their willingness to spend, causing an increase in aggregate demand.

Answer: D
 Improvements in technology would increase productivity and potentially lead to lower prices, causing an increase in consumer spending and an outward shift in aggregate demand.

Which of the Following Would Cause an Outward Shift of Aggregate