Which of the following could be expected to shift the aggregate demand curve?
A) An increase in government spending.
B) Consumption spending decreases.
C) Net exports fall.
D) All of the above.

Question

Quizplus · Accepted Answer

An increase in government spending (A) would shift the aggregate demand curve to the right, as it increases overall demand in the economy. 
Consumption spending decreases (B) would shift the aggregate demand curve to the left, as it reduces overall demand in the economy. 
A fall in net exports (C) would also shift the aggregate demand curve to the left, as it represents a reduction in overall demand for domestically produced goods and services. Therefore, all of the above factors would shift the aggregate demand curve.

Which of the Following Could Be Expected to Shift the Aggregate