A cut in government spending, a decrease in income abroad, an increase in taxes, or an expectation that future consumer income will fall will all cause aggregate:

Question

Quizplus · Accepted Answer

A cut in government spending, a decrease in income abroad, an increase in taxes, or an expectation that future consumer income will fall all indicate a decrease in overall economic activity, which then causes a decrease in demand, shifting the aggregate demand curve leftward.

A Cut in Government Spending, a Decrease in Income Abroad