ECONOMICS
AGGREGATE DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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aggregate demand curve would shift to the right.
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aggregate supply curve would shift to the left.
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aggregate supply curve would shift to the right.
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aggregate demand curve would shift to the left.
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Detailed explanation-1: -Answer and Explanation: Other things equal, if the national incomes of the major trading partners of the United States were to rise, the U.S A. aggregate demand curve would shift to the right.
Detailed explanation-2: -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.
Detailed explanation-3: -Answer and Explanation: The correct answer is A. A decrease in price level. Aggregate demand shifts favorably when the money supply increases and enable more consumer purchasing power.
Detailed explanation-4: -The aggregate supply curve shifts to the right as productivity increases or the price of key inputs falls, making a combination of lower inflation, higher output, and lower unemployment possible.
Detailed explanation-5: -What is likely to happen if a new aggregate demand curve moves to the right? Prices and output would rise, and the equilibrium point will change.