An increase in the growth rate of real output will cause the aggregate demand curve to shift to the right.

Question

Quizplus · Accepted Answer

An increase in the growth rate of real output reflects a movement along the aggregate demand curve due to increased production and income, not a shift of the curve itself. A shift to the right in the aggregate demand curve is typically caused by factors such as increases in consumer spending, investment spending, government spending, or net exports, not by the growth rate of real output.

An Increase in the Growth Rate of Real Output Will