Answer to Question #242888 in Macroeconomics for Ch 29

Question

Which of the following will cause a rightward shift in aggregate demand?

(i) Expected increase in firm profits.

(ii) A decrease in income tax rates.

(iii) An increase in expected future income.

(iv) A fall in the price level.

Only i, ii and iii.

ii and iii.

Only ii and iv.

i and iii.

Answer 1

1 and 3 is the correct answer