Ceteris paribus, which of the following would cause the aggregate demand curve to shift to the left?
A)lower personal taxes
B)a rise in consumer confidence
C)greater stock market wealth
D)a reduction in transfer payments

Question

Ceteris paribus, which of the following would cause the aggregate demand curve to shift to the left?
A)​lower personal taxes
B)​a rise in consumer confidence
C)​greater stock market wealth
D)​a reduction in transfer payments

Quizplus · Accepted Answer

A reduction in transfer payments (such as welfare, social security, or unemployment benefits) would decrease disposable income for individuals, leading to a decrease in consumption spending and overall aggregate demand in the economy.

Ceteris Paribus, Which of the Following Would Cause the Aggregate