Which factor causes a leftward shift of the aggregate demand curve?
A) an increase in consumption
B) an increase in wealth
C) an increase in exports
D) a decrease in government spending

Question

Quizplus · Accepted Answer

A decrease in government spending would lead to a decrease in overall demand for goods and services, causing a leftward shift of the aggregate demand curve. An increase in consumption, wealth, or exports would lead to an increase in overall demand, causing a rightward shift of the aggregate demand curve.

Which Factor Causes a Leftward Shift of the Aggregate Demand