An increase in aggregate demand is shown by a
A) leftward shift the AD curve.
B) movement downward along the AD curve.
C) rightward shift the AD curve.
D) movement upward along the AD curve.

Question

Quizplus · Accepted Answer

An increase in aggregate demand means that there is a higher level of demand for goods and services in the economy. This is represented by a rightward shift of the aggregate demand (AD) curve, as the demand for goods and services at each price level increases. Therefore, choice C is the correct answer.

An Increase in Aggregate Demand Is Shown by a