Which of the following will cause the aggregate demand curve to shift to the right ?...

Which of the following will cause the aggregate demand curve to shift to the right ?

a. A decrease in household wealth

b. A decrease in the price level

c. Consumer expectations of higher future income

d. An increase in the interest rate

Which of the following events would most likely caused the increase in aggregate demand

a. An increase in interest rates

b. An increase in household wealth

c. A decrease in consumer confidence

d. A decrease in the price level

Solutions

Expert Solution

Answer option b) A decrease in the price level

A decrease in price level will shift the aggregate demand curve to right

The reason is that there is inverse relationship in price and demand as price fall quantity demanded rise and gagregate demand curve shifts to right.

Answers option d) Decrease in price levels

decrease in the price level would most likely caused the increase in aggregate demand.

Rahul Sunny answered 1 year ago

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