Question

Which one of the following statements is correct?

A. An increase in government expenditure will shift the ASSR to the right.
B. Wage negotiations will shift the AD curve to the right.
C. Stimulating aggregate demand will not lead to a higher price level.
D. An increase in government expenditure will shift the AD curve to the right.

Answer 1

D. An increase in government expenditure will shift the AD curve to the right.