All of the following would cause the aggregate demand curve to shift except
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Which of the following does not cause the aggregate demand curve to shift?A change in inflation changes the level of prices in the economy and thereby cause a movement along the AD curve rather than a shift. Therefore, the correct option is D, an increase in inflation.
What would cause the aggregate demand curve to shift?The aggregate demand curve, or AD curve, shifts to the right as the components of aggregate demand—consumption spending, investment spending, government spending, and spending on exports minus imports—rise. The AD curve will shift back to the left as these components fall.
What are the 4 shifters of aggregate supply?These aggregate supply shifters include Changes in Resource Prices, Changes in Resource Productivity, Business Taxes and Subsidies, and Government Regulations.
Which of the following factors cause shifts in aggregate demand?Since modern economists calculate aggregate demand using a specific formula, shifts result from changes in the value of the formula's input variables: consumer spending, investment spending, government spending, exports, and imports.
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