A rightward shift in the aggregate demand (AD)curve could result from a rise in
A)induced imports.
B)desired investment.
C)the net tax rate.
D)desired saving.
E)the price level.

Question

Quizplus · Accepted Answer

A rightward shift in the AD curve implies an increase in overall demand, which can be caused by factors such as an increase in desired investment, consumer spending, or government spending. Among the choices given, only B (desired investment) is related to an increase in aggregate demand. Induced imports (A), the net tax rate (C), and desired saving (D) would all have a negative effect on aggregate demand. The price level (E) would result in a movement along the AD curve, rather than a shift.

A Rightward Shift in the Aggregate Demand (AD)curve Could Result