A(n)________ would cause a leftward shift of the aggregate demand curve.
A) increase in real wealth
B) increase in expected income
C) decrease in foreign income
D) increase in the expected price level
E) decrease in the value of the dollar

Question

Quizplus · Accepted Answer

A decrease in foreign income would cause a decrease in net exports, leading to a decrease in aggregate demand and a leftward shift of the aggregate demand curve. The other options - an increase in real wealth, an increase in expected income, an increase in the expected price level, and a decrease in the value of the dollar - would lead to a rightward shift of the aggregate demand curve.

A(n)________ Would Cause a Leftward Shift of the Aggregate Demand