Aggregate demand ________ and shifts the AD curve ________ when ________.
A)decreases;leftward;the price level rises
B)increases;rightward;foreign incomes increase
C)increases;leftward;taxes increase
D)increases;rightward;taxes increase
E)decreases;rightward;government expenditure increases

Question

Quizplus · Accepted Answer

According to the definition of aggregate demand, an increase in foreign incomes will lead to an increase in demand for domestically produced goods and services, causing an increase in aggregate demand and a rightward shift of the AD curve. Therefore, choice B is the correct answer. The other options are incorrect because they do not align with the basic principles of aggregate demand.

Aggregate Demand ________ and Shifts the AD Curve ________ When

Aggregate Demand and Shifts the AD Curve When