A non-price level change that increases aggregate spending on domestic goods will
A)cause the price level to increase.
B)shift AD to the right.
C)cause the price level to decrease.
D)shift AD to the left

Question

Quizplus · Accepted Answer

A non-price level change that increases aggregate spending on domestic goods would shift the aggregate demand (AD) curve to the right. This could be due to factors such as an increase in government spending, a decrease in taxes, or an increase in consumer confidence. As a result, there would be an increase in both real GDP and the price level.

A Non-Price Level Change That Increases Aggregate Spending on Domestic