Which of the following shifts aggregate demand to the right?
A)an increase in the price level
B)an increase in the money supply
C)a decrease in the price level
D)a decrease in the money supply

Question

Quizplus · Accepted Answer

An increase in the money supply will shift aggregate demand to the right because consumers and businesses will have more money to spend and invest, leading to an increase in consumption and investment spending. A decrease in the money supply would shift aggregate demand to the left, as consumers and businesses would have less money to spend and invest. An increase in the price level or a decrease in the price level would cause a movement along the aggregate demand curve, not a shift.

Which of the Following Shifts Aggregate Demand to the Right