Refer to the information provided in Figure 13.1 below to answer the questions that follow. Figure 13.1 -Refer to Figure 13.1.An aggregate demand shift from AD¹ to AD⁰ can be caused by A)a decrease in government spending. B)an increase in money supply. C)a decrease in the price level. D)an increase in the price level.

Question

Quizplus · Accepted Answer

A decrease in government spending reduces overall demand in the economy, causing the aggregate demand curve to shift to the left from AD¹ to AD⁰.

Refer to the Information Provided in Figure 13