The total demand line will shift whenever:
A) the MPC increases.
B) output changes.
C) there is an exogenous change in one of its components (C, I, G, or X).
D) aggregate supply increases.

Question

Quizplus · Accepted Answer

The total demand line will shift whenever there is an exogenous change in one of its components (C, I, G, or X), such as a change in government spending, investment, consumer behavior, or foreign demand. Changes in MPC or aggregate supply may affect the level of demand, but they do not shift the entire demand line.

The Total Demand Line Will Shift Whenever