(Figure: Shift of the Aggregate Demand Curve) Use Figure: Shift of the Aggregate Demand Curve. A movement from AD1 to AD2 may result from:

A)an increase in government spending
B)an increase in government spending.
C)a decrease in government spending
D)a decrease in government spending.
E)an increase in personal income taxes.
F)an increase in personal income taxes
G)a decrease in consumer wealt
H)a decrease in consumer wealt.

Question

(Figure: Shift of the Aggregate Demand Curve) Use Figure: Shift of the Aggregate Demand Curve. A movement from AD1 to AD2 may result from:

A)an increase in government spending 
B)an increase in government spending. 
C)a decrease in government spending 
D)a decrease in government spending. 
E)an increase in personal income taxes. 
F)an increase in personal income taxes 
G)a decrease in consumer wealt 
H)a decrease in consumer wealt.

Quizplus · Accepted Answer

An increase in government spending would shift the aggregate demand curve to the right from AD1 to AD2. Options C, E, F, and H would shift the aggregate demand curve to the left, resulting in movement from AD1 to a curve to the left of AD1. The duplicated option H could either refer to a decrease in consumer wealth or something else, which is unclear.