Answer:
Explanation:The shift in aggregate demand depicted in Figure 8.7 may be due to an increase in consumer confidence, a decrease in interest rates, or an increase in exports. These factors can cause a shift in the aggregate demand curve to the right, as shown in the figure.
An increase in consumer confidence can lead to higher consumer spending, which in turn can lead to an increase in aggregate demand. A decrease in interest rates can encourage borrowing and investment, leading to increased spending and an increase in aggregate demand. An increase in exports can lead to an increase in demand for domestically produced goods and services, which can also increase aggregate demand.
In contrast, an increase in income taxes would likely decrease aggregate demand, as consumers would have less disposable income to spend on goods and services. Therefore, this factor is unlikely to be the cause of the shift in aggregate demand depicted in Figure 8.7.
Therefore, the correct answers are:
Increase in consumer confidence.
Decrease in interest rates.
Increase in exports.