According to one In the News article,"Economy Is Already Feeling the Impact of Federal Government's Spending Cuts," a decrease in government spending has contributed to the sluggish economy.This would imply that

Question

Quizplus · Accepted Answer

A decrease in government spending would result in a shift of the aggregate demand curve to the left, as there would be less spending in the economy overall. This would contribute to a sluggish economy. Injections into the circular flow would refer to government spending, which has decreased in this scenario, so C is not correct. The aggregate supply curve is not directly affected by government spending cuts, so D is not correct.

According to One in the News Article,"Economy Is Already Feeling