The aggregate demand curve would shift to the right if
A) government spending were decreased.
B) net taxes were decreased.
C) the money supply were decreased.
D) the cost of energy were to increase.

Question

Quizplus · Accepted Answer

When net taxes are decreased, consumers have more disposable income which leads to an increase in consumption spending, contributing to an overall increase in aggregate demand. The other options would lead to a decrease in aggregate demand.

The Aggregate Demand Curve Would Shift to the Right If