Which of the following would shift the aggregate demand curve leftward year after year?
A) inflation
B) a one-time increase in government expenditures on goods and services
C) negative growth in the quantity of money
D) a one-time tax cut

Question

Quizplus · Accepted Answer

Negative growth in the quantity of money would reduce the overall spending power of consumers and businesses, resulting in a leftward shift of the aggregate demand curve. Inflation, a one-time increase in government expenditures, and a one-time tax cut would all potentially increase aggregate demand and shift the curve rightward.

Which of the Following Would Shift the Aggregate Demand Curve