Question 25
When the aggregate demand curve shifts to the right?
(a)The money supply increases
(b)Net export increases.
(c)Taxes are increases.
(d)Money supply and net export increase
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Explanation:
The aggregate demand curve shifts to the rightas the components ofaggregate demand—consumption spending, investment spending, government spending, and spending on exports minus imports—rise. The AD curve willshift back to the left as these components fall.
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