Which of the following would shift the aggregate demand curve to the right?
A) An increase in government spending
B) An increase in taxes
C) An increase in interest rates
D) An increase in input prices

Question

Quizplus · Accepted Answer

An increase in government spending would increase the aggregate demand because it would lead to an increase in overall spending in the economy. This would lead to an increase in the demand for goods and services, increase employment, and eventually lead to an increase in prices.

Which of the Following Would Shift the Aggregate Demand Curve