Which event will shift the aggregate demand curve to the right?
A) a decrease in exports
B) an increase in imports
C) a rise in the interest rate
D) a new government program implemented to eliminate poverty

Question

Quizplus · Accepted Answer

A new government program implemented to eliminate poverty will increase government spending and therefore increase aggregate demand, shifting the aggregate demand curve to the right. A decrease in exports and an increase in imports will decrease net exports and shift the aggregate demand curve to the left. A rise in interest rates will decrease investment and consumption, also shifting the aggregate demand curve to the left.

Which Event Will Shift the Aggregate Demand Curve to the Right