Question

The aggregate demand curve will shift out or to the right if:

Answer 1

Heya user!

Shift of demand curve refer to all such situation when demand for a commodity increases or decreases due to changes in other determinants of demand ,other than own price of the commodity .

➡️A situation when demand curve shift to the right is known as situation of increase in demand (when more is purchase at the same price of the commodity ).On other hand a situation when demand curve shift to the left is known as situation of decrease in demand (when less is purchased at the same price of the commodity ).

EXAMPLE ✨✨

A consumer may buy more t-shirt when his income Rises ,price of a t-shirt remaining the same . A consumer now enjoys his fresh demand schedule ,showing higher number of T-shirt against each possible price than before.Accordingly, is demand curve for( T-shirt) shift to the right .

Answer 2

Hey mate.....

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. ... If the AD curve shifts to the right, then the equilibrium quantity of output and the price level will rise.