The aggregate demand curve is most likely to shift to the right when:
A) Consumer spending falls.
B) Taxes fall.
C) Government spending falls.
D) Technology improves.

Question

Quizplus · Accepted Answer

When taxes fall, consumers have more disposable income, which leads to an increase in consumer spending. This increase in consumer spending leads to a shift in the aggregate demand curve to the right.

The Aggregate Demand Curve Is Most Likely to Shift to the Right