A decrease in government spending on the park system would cause
A)the aggregate demand curve to shift to the right.
B)the aggregate demand curve to shift to the left.
C)a movement down and to the right along the aggregate demand curve.
D)a movement up and to the left along the aggregate demand curve.

Question

Quizplus · Accepted Answer

A decrease in government spending on the park system would lead to a reduction in the income and employment levels which would cause a decrease in consumer spending and ultimately lower the aggregate demand. Hence, the aggregate demand curve would shift to the left.

A Decrease in Government Spending on the Park System Would