Aggregate demand_{--------------------}and shifts the AD curve_{--------------------} when _{--------------------}. A)decreases; rightward; government expenditure increases B)decreases; leftward; government expenditure increases C)increases; rightward; taxes increase D)increases; leftward; taxes decrease E)decreases; leftward; foreign incomes decrease

Question

Quizplus · Accepted Answer

When foreign incomes decrease, foreign consumers buy fewer domestic goods, reducing aggregate demand and shifting the AD curve leftward.

Aggregate Demand--------------------and Shifts the AD Curve-------------------- When --------------------

Aggregate Demand_{--------------------}and Shifts the AD Curve_{--------------------} When _{--------------------}