Which of the following factors would NOT cause aggregate demand to increase?
A) lower taxes
B) higher government spending
C) increased wealth
D) an advance in technology

Question

Quizplus · Accepted Answer

An advance in technology would increase productivity and shift the aggregate supply curve to the right, but it would not necessarily cause an increase in aggregate demand. The factors that could increase aggregate demand are A, B, and C. Lower taxes would increase disposable income and consumption spending, higher government spending would increase overall spending in the economy, and increased wealth would also lead to higher consumption spending.

Which of the Following Factors Would NOT Cause Aggregate Demand