Which of the following will cause the aggregate demand curve to shift to the left?
A)A decrease in consumer and business confidence because of a terrorist attack.
B)A decrease in the interest rate.
C)A decrease in business taxes.
D)An improvement in technology.

Question

Quizplus · Accepted Answer

A terrorist attack would likely decrease consumer and business confidence, leading to a decrease in spending and a shift in the aggregate demand curve to the left. The other options would either increase consumer and business spending (such as a decrease in taxes or interest rates) or shift the aggregate supply curve (such as an improvement in technology).

Which of the Following Will Cause the Aggregate Demand Curve