Answer to Question #243320 in Macroeconomics for Uyu

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.

Group of answer choices

i and iii.

Only ii and iv.

Only i, ii and iii.

ii and iii.

Answer 1

i and iii.

(i) Expected increase in firm profits.

(iii) An increase in expected future income.