What causes rightward shift of the aggregate demand curve?

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2026-03-11 03:45

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A rightward shift of the aggregate demand curve is primarily caused by factors that increase overall spending in the economy. This can include a rise in consumer confidence leading to increased household consumption, an increase in government spending, or a reduction in interest rates that encourages borrowing and investment. Additionally, tax cuts can boost disposable income, further driving demand. An increase in exports due to favorable exchange rates or global economic conditions can also contribute to this shift.

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