Which of the following shifts aggregate demand to the right?
A) the federal government reduces purchases of military equipment
B) a decrease in the money supply
C) the price level rises
D) net exports increase

Question

Quizplus · Accepted Answer

An increase in net exports will shift aggregate demand to the right because it means that more goods and services are being exported, which increases domestic production and income. This leads to an increase in consumer spending, thereby increasing aggregate demand. The other options (A: a decrease in government purchases, B: a decrease in the money supply, and C: a rise in the price level) would all cause a leftward shift in aggregate demand.

Which of the Following Shifts Aggregate Demand to the Right