Which of the following shifts the aggregate demand curve rightward?
A) a cut in personal income taxes
B) a decrease in the quantity of money and an increase in interest rates
C) a decrease in government expenditures
D) the expectation of a future loss of income

Question

Quizplus · Accepted Answer

A cut in personal income taxes increases disposable income, which in turn increases consumption spending. This leads to an increase in aggregate demand, shifting the aggregate demand curve rightward.

Which of the Following Shifts the Aggregate Demand Curve Rightward