At a given price level,an increase in which of the following shifts aggregate demand to the right?
A)consumption
B)investment
C)government expenditures
D)All of the above are correct.

Question

Quizplus · Accepted Answer

An increase in any of the above factors would increase aggregate demand and shift the AD curve to the right.

- Consumption: If consumers are willing and able to spend more at a given price level, it would increase the aggregate demand.
- Investment: An increase in investment spending implies that firms are planning to produce more in the future, which increases the aggregate demand.
- Government expenditures: Higher government spending (on infrastructure, education, healthcare, etc.) directly increases the aggregate demand.

At a Given Price Level,an Increase in Which of the Following