A decrease in government spending initially and primarily shifts which curve in what direction?
A)aggregate demand right
B)aggregate demand left
C)aggregate supply right
D)neither aggregate demand nor aggregate supply

Question

Quizplus · Accepted Answer

A decrease in government spending will lead to a decrease in aggregate demand, which shifts the aggregate demand curve to the left. This is because there is now less government spending and therefore less money flowing into the economy, which reduces consumer spending and business investment, ultimately leading to a decrease in aggregate demand.

A Decrease in Government Spending Initially and Primarily Shifts Which