Which of the following would cause the aggregate demand curve to keep shifting rightward year after year?
A)inflation
B)excess wage demands
C)a one- time increase in government expenditures on goods and services
D)a one- time tax cut
E)a persistent increase in the quantity of money

Question

Quizplus · Accepted Answer

A persistent increase in the quantity of money would cause an increase in spending and aggregate demand over time, leading to a rightward shift of the aggregate demand curve. Inflation (A) and excess wage demands (B) would not cause a continuous rightward shift, as they would eventually lead to a decrease in aggregate demand. A one-time increase in government expenditures (C) or a one-time tax cut (D) would only have a temporary effect on aggregate demand.

Which of the Following Would Cause the Aggregate Demand Curve