A leftward shift of the aggregate demand (AD)curve could result from a fall in
A)autonomous government purchases.
B)induced imports.
C)the price level.
D)autonomous desired saving.
E)the net tax rate.

Question

Quizplus · Accepted Answer

A fall in autonomous government purchases would reduce the overall level of spending in the economy, including consumer spending and investment spending. This would lead to a leftward shift of the AD curve, indicating a decrease in overall demand at each price level. The other options may impact AD in other ways, but would not directly result in a leftward shift of the AD curve.

A Leftward Shift of the Aggregate Demand (AD)curve Could Result