Which of the following will NOT shift the aggregate demand curve?
A) a change in the domestic marginal tax rates
B) a change in government expenditures
C) a change in the domestic price level
D) depreciation in the value of the national currency

Question

Quizplus · Accepted Answer

A change in the domestic price level will cause a movement along the aggregate demand curve, rather than shifting it. The other options will shift the aggregate demand curve. A decrease in marginal tax rates will increase disposable income, causing an increase in consumption and a shift in the AD curve to the right. An increase in government expenditures will directly increase aggregate demand and shift the AD curve to the right. A depreciation in the value of the national currency will increase net exports, leading to a shift in the AD curve to the right.

Which of the Following Will NOT Shift the Aggregate Demand