The aggregate demand curve shifts to the left if:
A) the government decreases taxes.
B) household consumption falls.
C) the government increases spending.
D) the supply of money rises.

Question

Quizplus · Accepted Answer

If household consumption falls, it means that consumers are spending less, reducing the total amount of goods and services demanded in the economy. This shift in consumption behavior will cause the demand curve to shift to the left.

The Aggregate Demand Curve Shifts to the Left If