Decreases in autonomous spending cause rightward shifts of the aggregate demand and supply curves.

Name: Decreases in autonomous spending cause rightward shifts of the aggregate demand and supply curves.
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Question

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Decreases in autonomous spending would cause a leftward shift of the aggregate demand curve as there is now less demand for goods and services. This shift would then lead to a decrease in price level and a decrease in output (shift to the left of the aggregate supply curve).

Decreases in Autonomous Spending Cause Rightward Shifts of the Aggregate