Which of the following will cause the aggregate demand curve to shift to the left?
A)A decrease in consumer and business confidence because of a terrorist attack.
B)A decrease in the interest rate.
C)A decrease in business taxes.
D)An improvement in technology.

Question

Quizplus · Accepted Answer

A terrorist attack can cause a decrease in confidence, leading to a decrease in consumption spending and investment spending, which will shift the aggregate demand curve to the left. The other options, such as a decrease in interest rates, business taxes, or an improvement in technology, would typically shift the aggregate demand curve to the right.

Which of the Following Will Cause the Aggregate Demand Curve