Which of the following both shift aggregate demand left?
A)a decrease in taxes and at a given price level consumers feel more wealthy
B)a decrease in taxes and at a given price level consumers feel less wealthy
C)an increase in taxes and at a given price level consumers feel more wealthy
D)an increase in taxes and at a given price level consumers feel less wealthy

Question

Quizplus · Accepted Answer

An increase in taxes reduces consumers' disposable income, making them feel less wealthy and reducing their willingness to spend. This shift in consumer spending reduces aggregate demand, leading to a leftward shift in the aggregate demand curve.

Which of the Following Both Shift Aggregate Demand Left