Which of the following would cause the aggregate demand curve to keep shifting rightward year after year?
A)a one-time tax cut
B)a one-time increase in government expenditures on goods and services
C)inflation
D)excess wage demands
E)a persistent increase in the quantity of money

Question

Quizplus · Accepted Answer

A persistent increase in the quantity of money would cause the aggregate demand curve to keep shifting rightward year after year, as it leads to an increase in consumer spending and investment spending. A one-time tax cut or increase in government expenditures on goods and services would only have a one-time effect and not cause a continuous shift in the aggregate demand curve. Inflation and excess wage demands may lead to a short-term shift in the aggregate demand curve, but not a persistent rightward shift.

Which of the Following Would Cause the Aggregate Demand Curve