In a closed economy,which of the following will cause the economy's aggregate demand curve to shift to the right?
A) decreases and wages and salaries paid to employees
B) increases in the prices of oil and natural gas
C) decreases in income taxes for households
D) decreases in the productivity of labor

Question

Quizplus · Accepted Answer

Decreases in income taxes for households will increase disposable income and therefore increase consumption expenditures, leading to an increase in aggregate demand.

In a Closed Economy,which of the Following Will Cause the Economy's