Which of the following shifts aggregate demand to the left?
A) an increase in the price level
B) an increase in payroll taxes
C) an increase in net exports
D) an investment tax credit

Name: Which of the following shifts aggregate demand to the left? A) an increase in the price level B) an increase in payroll taxes C) an increase in net exports D) an investment tax credit
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Question

Quizplus · Accepted Answer

An increase in payroll taxes would decrease disposable income and ultimately consumption, leading to a decrease in aggregate demand.

Which of the Following Shifts Aggregate Demand to the Left