Which of the following would shift the aggregate demand curve to the left?
A) an increase in the money supply
B) a cut in federal income taxes
C) an expected decrease in future income
D) an increase in the price level

Question

Quizplus · Accepted Answer

The expected decrease in future income would lead consumers to spend less and save more, resulting in a decrease in consumption and a leftward shift in the aggregate demand curve. Options A and B would increase aggregate demand, and option D would result in movement along the aggregate demand curve but not a shift.

Which of the Following Would Shift the Aggregate Demand Curve