Which event will NOT cause a rightward shift of the aggregate demand curve?
A) Consumers expect an economic contraction will soon occur.
B) A decrease in interest rates leads to an increase in investment.
C) The dollar depreciates.
D) The government decides to spend more money on goods.

Question

Quizplus · Accepted Answer

When consumers expect an economic contraction, they will likely reduce their spending, which will cause a decrease in aggregate demand, shifting the curve to the left. All the other choices would cause an increase in aggregate demand, shifting the curve to the right.

Which Event Will NOT Cause a Rightward Shift of the Aggregate