Which of the following increases U.S. aggregate demand?
A)a lower price level, increasing citizen's real wealth
B)a lower price level, reducing interest rates
C)a lower price level, increasing exports and decreasing imports
D)None of the above

Question

Which of the following increases U.S. aggregate demand?
A)​a lower price level, increasing citizen's real wealth
B)​a lower price level, reducing interest rates
C)​a lower price level, increasing exports and decreasing imports
D)​None of the above

Quizplus · Accepted Answer

A lower price level itself does not increase aggregate demand; it affects the components of aggregate demand but does not directly increase it. Aggregate demand is influenced by factors like fiscal policy, monetary policy, and changes in consumer and business confidence, not just price level changes.

Which of the Following Increases U.S. Aggregate Demand