Aggregate demand_{--------------------} and shifts the AD curve_{--------------------} when _{--------------------} . A)increases; rightward; foreign incomes increase B)decreases; leftward; the price level rises C)decreases; rightward; government expenditure increases D)increases; leftward; taxes increase E)increases; rightward; taxes increase

Question

Quizplus · Accepted Answer

When foreign incomes increase, they can buy more goods and services from the domestic economy, increasing aggregate demand and shifting the AD curve rightward.

Aggregate Demand-------------------- and Shifts the AD Curve-------------------- When

Aggregate Demand_{--------------------} and Shifts the AD Curve_{--------------------} When