Which of the following would likely cause aggregate demand to shift to the right?
A) Consumer confidence regarding future income increases
B) A tax credit for small businesses is issued
C) The government builds new highways
D) All of these are likely to cause aggregate demand to shift to the right.

Question

Quizplus · Accepted Answer

A) Consumer confidence regarding future income increases would lead to an increase in consumption expenditure, shifting aggregate demand to the right.
B) A tax credit for small businesses would increase investment spending, leading to an increase in aggregate demand.
C) If the government builds new highways, it would lead to an increase in government spending and create job opportunities, leading to an increase in consumption and investment spending, shifting aggregate demand to the right. 
Therefore, all the options mentioned would cause aggregate demand to shift to the right.

Which of the Following Would Likely Cause Aggregate Demand to Shift