Which of the following government actions will shift the aggregate demand left?
A)a decrease in taxes
B)cuts in military expenditures
C)signing a free trade agreement
D)repealing an import tariff

Question

Quizplus · Accepted Answer

Cuts in military expenditures will decrease government spending, leading to a decrease in aggregate demand. A decrease in taxes (option A), signing a free trade agreement (option C), and repealing an import tariff (option D) will all increase aggregate demand through increased consumer spending, increased exports, and decreased prices of imported goods, respectively.

Which of the Following Government Actions Will Shift the Aggregate