Which of the following would shift the aggregate demand curve to the left? A. an increase...

Question

Question

Which of the following would shift the aggregate demand curve to the left?

A.

an increase in the money supply

B.

an increase in the price level

C.

an expected decrease in future income

D.

a cut in federal income taxes

business economics

Answer 1

Answer #1

C is correct

Expectations of decrease in future income decreases consumption spending even today that decreases aggregate demand and shifts the AD curve leftward.

Answer 2

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