The aggregate demand curve would shift to the right as a result of A. a decrease in the amount of money in circulation. B. a drop in the price level. C. tax increases. D. a decrease in the U. S. real interest rate.

Question

Wendy Rivers

Business

9 March, 12:37

The aggregate demand curve would shift to the right as a result of A. a decrease in the amount of money in circulation. B. a drop in the price level. C. tax increases. D. a decrease in the U. S. real interest rate.

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Answers (1)

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Roderick Bruce · Answer 1

D) A drop in the price level

Explanation:

Aggregate Demand represents the demand for goods and services while its supply is called aggregate supply. Aggregate Demand Curve represents the total amount of goods and services demanded by an economy at different price levels. When there is shift to the left in an aggregate demand curve, it is caused by a drop in demand which could have been influenced by a rise in the price levels. A shift to the right in an aggregate demand curve signifies an increase in demand which might have been influenced by a drop in price levels.