Which of the following shifts the aggregate demand curve rightward?
A) a decrease in consumption
B) an increase in investment
C) a decrease in net exports
D) a decrease in government expenditure on goods and services

Question

Quizplus · Accepted Answer

An increase in investment leads to a higher demand for goods and services, which shifts the aggregate demand curve to the right. This is because when businesses invest more, they are essentially spending more money on capital goods, which increases overall demand in the economy.

Which of the Following Shifts the Aggregate Demand Curve Rightward