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B) A Rightward Shift in Aggregate Demand: Understanding Its Causes, Effects, and Economic Importance A rightward shift in aggregate demand (AD) is a fundamental concept in macroeconomics that signals strong economic growth and rising consumer and business confidence. When aggregate demand increases, it reflects heightened spending across goods, services, and investments, often leading to increased production, employment, and overall economic activity. ### What Triggers a Rightward Shift in Aggregate Demand? An increase in aggregate demand occurs when at least one of the components of AD shifts to the right: consumption (C), investment (I), government spending (G), or net exports (X – M). Several key factors drive this shift: