Narrbegin Exhibit 14.3 Aggregate supply and demand curves -In Exhibit 14.3 which of the following is not consistent with a shift in the aggregate demand curve from AD₁ to AD₂? A) A decrease in consumer spending. B) An increase in investment. C) An increase in government spending. D) An increase in net exports.

Question

Quizplus · Accepted Answer

A decrease in consumer spending would result in a leftward shift of the aggregate demand curve, not the rightward shift indicated in the question. An increase in investment, an increase in government spending, and an increase in net exports would all lead to a rightward shift of the aggregate demand curve.