The aggregate demand curve would move to the right if (A) foreign income increased.
What is the aggregate demand curve?
- The overall demand for final products and services in an economy at a certain time is known in macroeconomics as aggregate demand, sometimes known as a domestic final demand.
- Effective demand is a common name for it, however, other times this term is used to make a distinction.
- This is a country's demand for its gross domestic output.
- Due to the wealth effect on consumption, the interest rate effect on investment, and the impact of global commerce on net exports, it slopes downward.
- When the amount of real GDP demanded at each price level varies, the aggregate demand curve adjusts.
- The aggregate demand curve would move to the right if foreign income increased.
Therefore, the aggregate demand curve would move to the right if (A) foreign income increased.
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The correct question is given below:
Which of the following would shift the aggregate demand curve to the right?
A. an increase in foreign income.
B. an appreciation of the value of a country's currency.
C. a lower future expected price level.
D. an increase in imports
