what effect will an increase in income have on aggregate demand?\nthere will be a movement downward and…

what effect will an increase in income have on aggregate demand?\nthere will be a movement downward and along the aggregate demand curve.\nthere will be a movement upward and along the aggregate demand curve.\nthe aggregate demand curve will shift inward and to the left.\nthe aggregate demand curve will shift outward and to the right.

what effect will an increase in income have on aggregate demand?\nthere will be a movement downward and along the aggregate demand curve.\nthere will be a movement upward and along the aggregate demand curve.\nthe aggregate demand curve will shift inward and to the left.\nthe aggregate demand curve will shift outward and to the right.

Answer

Brief Explanations:

Aggregate demand is the total demand for goods and services in an economy. A change in income is a non-price determinant of aggregate demand. When income increases, consumers have more purchasing power, leading to higher demand at every price level. This causes a shift of the entire aggregate demand curve, not a movement along it. An increase in demand shifts the curve outward (to the right), while a decrease shifts it inward (to the left). Movements along the curve are caused by changes in the price level, not income.

Answer:

The aggregate demand curve will shift outward and to the right.