If some non-price level determinant causes total spending to increase, then the effect on aggregate demand will be a:
A)movement upward along the curve.
B)movement downward along the curve.
C)shift to the left.
D)shift to the right.

Question

If some non-price level determinant causes total spending to increase, then the effect on aggregate demand will be a:
A)​movement upward along the curve.
B)​movement downward along the curve.
C)​shift to the left.
D)​shift to the right.

Quizplus · Accepted Answer

If some non-price level determinant causes total spending to increase, such as an increase in consumer confidence or government spending, the aggregate demand curve will shift to the right, indicating a higher level of total spending at any given price level. This is because aggregate demand is a graphical representation of the relationship between the price level and total spending in an economy, holding all other factors constant.

If Some Non-Price Level Determinant Causes Total Spending to Increase