If there is an increase in aggregate demand, this implies that:
A) the AD curve has shifted to the right.
B) the AD curve has shifted to the left.
C) the price level has fallen as spending increased.
D) the price level has risen as spending decreased.
E) consumption has fallen.

Question

Quizplus · Accepted Answer

An increase in aggregate demand implies that consumers, businesses, and/or the government are spending more at every price level, which is represented graphically by a rightward shift of the aggregate demand (AD) curve.

If There Is an Increase in Aggregate Demand, This Implies