The aggregate demand curve will shift inwards when:
A) new technology arises
B) the costs of production inputs rise
C) the government increases income tax rates
D) the government reduces company tax rates

Question

Quizplus · Accepted Answer

An increase in income tax rates reduces consumers' disposable income, leading to a decrease in consumption, which shifts the aggregate demand curve inwards.

The Aggregate Demand Curve Will Shift Inwards When