ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The aggregate demand curve shifts to the right as the components of aggregate demand-consumption spending, investment spending, government spending, and spending on exports minus imports-rise. The AD curve will shift back to the left as these components fall.

Detailed explanation-2: -The aggregate demand curve tends to shift to the left when total consumer spending declines. 2 Consumers might spend less because the cost of living is rising or because government taxes have increased. Consumers may decide to spend less and save more if they expect prices to rise in the future.

Detailed explanation-3: -Increased government spending is likely to cause a rise in aggregate demand (AD). This can lead to higher growth in the short-term. It can also potentially lead to inflation.

Detailed explanation-4: -Like a market demand curve, the aggregate demand curve will also shift. It increases to the right, and a decrease is to the left. Since aggregate demand is made up of the four components of GDP–C, I, G, and Xn–anything that causes those to change will shift aggregate demand.

Detailed explanation-5: -Answer and Explanation: The answer is A. A change in the price level .