In the dynamic AD-AS diagram, an increase in the growth rate of the money supply causes
A) a shift of the aggregate demand curve to the left.
B) a shift of the aggregate demand curve to the right.
C) a downward movement along the aggregate demand curve.
D) an upward movement along the aggregate demand curve.

Question

Quizplus · Accepted Answer

An increase in the growth rate of the money supply typically leads to a rightward shift of the aggregate demand curve, as more money in the economy increases overall demand for goods and services.

In the Dynamic AD-AS Diagram, an Increase in the Growth