Which of the following would cause a leftward shift of the aggregate demand curve?
A)an increase in planned investment
B)a drop in the price level
C)a rise in the price level
D)an increase in autonomous consumption
E)anything that causes an upward shift in the saving function

Question

Quizplus · Accepted Answer

An upward shift in the saving function implies that people are saving more at each level of income, which reduces consumption and thus decreases aggregate demand, causing a leftward shift.

Which of the Following Would Cause a Leftward Shift of the Aggregate