An increase in government spending,other things constant,will cause a:

A) leftward shift of the aggregate supply curve.
B) rightward shift of the aggregate supply curve.
C) leftward shift of the aggregate demand curve.
D) rightward shift of the aggregate demand curve.
E) downward movement along the aggregate supply curve.

Aggregate Supply Curve

A diagram that exhibits the comprehensive volume of goods and services that economic producers are ready and capable of supplying at assorted price levels.

Aggregate Demand Curve

A graph representing the total demand for goods and services within an economy at various price levels.

Government Spending

The total amount of public expenditure by government agencies and institutions.