Which of the following will result in a rightward shift of the aggregate demand curve? An increase in the income tax rate An increase in the income tax rate A An increase in exports An increase in exports B A decrease in the price level A decrease in the price level C A decrease in household income A decrease in household income D A decrease in government spending

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05-04-2021
Business

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Which of the following will result in a rightward shift of the aggregate demand curve? An increase in the income tax rate An increase in the income tax rate A An increase in exports An increase in exports B A decrease in the price level A decrease in the price level C A decrease in household income A decrease in household income D A decrease in government spending

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Stanfordgoddyidn Stanfordgoddyidn · Answer 1 · 2021-04-09T12:24:17-04:00

Answer:

B. A decrease in the price level

Explanation:

Remember, the term aggregate demand generally refers to the total demand for finished goods and services produced in an economy.

Hence, among all the above-listed scenarios, we should be looking for a scenario or factor that influences demand. Price is one of the main factors that influence demand.

Thus, we would agree that in most economies a decrease in the price level could result in a rightward (positive increase) shift of the aggregate demand curve.

For example, assuming the price of gas in the country decreases; holding all other factors constant, people would naturally want to buy more gas at cheap prices.

Martebiidn Martebiidn · Answer 2 · 2021-10-28T04:47:24-04:00

The statement among the options that will result in a rightward shift of the aggregate demand curve is a decrease in the price level.

There are various parts of aggregate demand. They include consumption spending, investment spending, government spending etc.

A shift of the aggregate curve (AD) to the right is simply known to be that at a part above increased that lead to a greater amount of total spending would occur at every price level.

Conclusively, it can also result to changes in the behavior of consumers and firms and changes in government tax.

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