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What causes a rightward shift of the aggregate demand curve?

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. The AD curve will shift back to the left as these components fall.

Which of the following would cause a rightward shift of the AD curve quizlet?

The AD curve shifts rightward if taxes decrease. If a change in investment spending is due to a change in the price level, then the aggregate demand curve will shift. If the money demand curve shifts rightward, the AD curve also shifts rightward.

Which of the following would cause a rightward shift in the aggregate supply curve quizlet?

Falling wages will shift the aggregate supply curve to the right, producing full employment.

Which of the following will result in a rightward shift of the aggregate demand curve quizlet?

Only a decrease in existing capital stock will result in a rightward shift of the aggregate demand curve.