Which of the following could cause a leftward shift in the aggregate demand (AD)curve?
A)an increase in autonomous exports
B)an increase in autonomous government purchases
C)an increase in government transfer payments to households
D)an increase in desired investment
E)an increase in autonomous desired savings

Question

Quizplus · Accepted Answer

An increase in autonomous desired savings indicates that households and businesses are saving more, which means they are consuming less. This leads to a decrease in demand for goods and services, causing a leftward shift in the aggregate demand curve.

Which of the Following Could Cause a Leftward Shift in the Aggregate