________ shifts the IS curve to the left.
A) An increase in government spending
B) A decrease in government spending
C) A decrease in the price level
D) An increase in the Z factors

Question

Quizplus · Accepted Answer

A decrease in government spending reduces aggregate demand, causing a shift of the IS curve to the left. An increase in government spending would have the opposite effect and shift the IS curve to the right. A decrease in the price level and an increase in the Z factors would also shift the IS curve to the right, so they are not the best choices.

________ Shifts the IS Curve to the Left