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

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 2 years ago

State which of the following changes cause a shift in the aggregate demand curve and which...

State which of the following changes cause a shift in the aggregate demand curve and which ones are a movement along it. Also provide the direction of the change. A cut in government purchases. A crash in the U.S. stock market. A shift to a lower inflation target in the monetary policy rule. Being thrifty now becoming fashionable. An increase in the European interest rate.

Determine whether the events below will cause the aggregate demand curve to shift to the left or to the right.

Determine whether the events below will cause the aggregate demand curve to shift to the left or to the right. Assume the price le remains constant a. Government purchases increase by $2 billion. Aggregate demand shifts (Click to select) b. Real interest rates increase. Aggregate demand shifts (Click to select) c. Taxes increase. Aggregate demand shifts (Click to select) d. Aggregate consumption decreases as consumer confidence falls. Aggregate demand shifts (Click to select) .

Determine whether each of the following would cause a shift of the aggregate demand curve, a...

Determine whether each of the following would cause a shift of the aggregate demand curve, a shift of the aggregate supply curve, a shift in neither curve, or a shift in both curves. If a shift is caused, indicate which curve shifts, and in which direction it shifts. What happens to aggregate output and the price level in each case? 1] The price level changes. 2] Consumer confidence increases. 3] The supply of resources decreases. 4] The wage rate decreases.

Explain the changes that would cause the dynamic aggregate demand curve to shift.

Which of the following will shift the aggregate supply curve to the right? Instructions: You may...

Which of the following will shift the aggregate supply curve to the right? Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers. a substantial increase in the price of oil a two-fold increase in the manufacturing wages as a result of a law passed by the government a decrease in business taxes an increase in the overall productivity in the economy...

Which of the following situations would cause a shift in the demand curve, as opposed to...

Which of the following situations would cause a shift in the demand curve, as opposed to a change in the quantity demanded? Vegetable prices rise as the majority of the population no longer eats meat. Auto sales increase due to increased employment. Gasoline consumption decreases as the taxes included in the price of gasoline increase. Both A and B.

Which of the following would shift the demand curve for cars to the right? Group of...

Which of the following would shift the demand curve for cars to the right? Group of answer choices An increase in the federal funds rate An increase in discount lending by the Fed to banks An increase in home mortgage interest rates An increase in the unemployment rate over the NAIRU originally proposed the use of government spending to stimulate the economy in the 1930s, during the Great Depression. Group of answer choices John Maynard Keynes Franklin Delano Roosevelt Albert...

Describe whether the following changes cause the short-run aggregate supply curve to increase (shift right), decrease...

Describe whether the following changes cause the short-run aggregate supply curve to increase (shift right), decrease (shift left), or neither. (a) The price level increases. (b) Input prices decrease. (c) Firms and workers expect the price level to fall. (d) The price level decreases. (e) New policies cause an increase in the cost of meeting government regulations. (f) The number of workers in the labor force increases.

Describe whether the following changes cause the long-run aggregate supply curve to increase (shift right), decrease...

Describe whether the following changes cause the long-run aggregate supply curve to increase (shift right), decrease (shift left), or neither. (a) The price level increases. (b) The stock of capital in the economy increases. (c) Natural resources increase. (d) The price level decreases. (e) Firms and workers expect the price level to rise. (f) The number of workers in the labor force increases.

Which of the following will shift the aggregate demand curve to the left? Instructions: You may...

Which of the following will shift the aggregate demand curve to the left? Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers. an increase in the incomes of foreign households due to an economic boom overseas an increase in corporate profit taxes by the government an increase in interest rates a decrease in personal income taxes by the government

Question