Graphically,what would cause the aggregate demand curve to shift to the right?
A)An increase in taxes.
B)A decrease in government spending on goods and services.
C)An increase in net tax revenues.
D)Counter-cyclical fiscal policy and a recessionary gap.
E)Counter-cyclical fiscal policy and an inflationary gap.

Question

Quizplus · Accepted Answer

Counter-cyclical fiscal policy during a recessionary gap involves increasing government spending or cutting taxes to stimulate the economy, which would shift the aggregate demand curve to the right.

Graphically,what Would Cause the Aggregate Demand Curve to Shift to the Right