Which of the following would both shift aggregate demand right?
A)the price level decreases and government expenditures increase.
B)the price level decreases and the government repeals an investment tax credit.
C)taxes decrease and government expenditures increase.
D)None of the above are correct.

Question

Quizplus · Accepted Answer

A decrease in taxes would increase consumer disposable income, leading to an increase in consumption and thus aggregate demand. Additionally, an increase in government expenditures would also increase aggregate demand.

Which of the Following Would Both Shift Aggregate Demand Right