Which of the following would shift the aggregate demand curve to the right?
A)an increase in government spending
B)an increase in taxes
C)an increase in interest rates
D)an increase in input prices

Question

Quizplus · Accepted Answer

An increase in government spending would increase the overall demand for goods and services in the economy, thus shifting the aggregate demand curve to the right. An increase in taxes would have the opposite effect and lead to a leftward shift of the aggregate demand curve. An increase in interest rates or input prices would likely decrease overall demand, leading to a leftward shift of the aggregate demand curve.

Which of the Following Would Shift the Aggregate Demand Curve