If some non-price level determinant causes total spending to decrease, then the effect on aggregate demand will be a:
A)movement upward along the curve.
B)movement downward along the curve.
C)shift to the left.
D)shift to the right.

Question

If some non-price level determinant causes total spending to decrease, then the effect on aggregate demand will be a:
A)​movement upward along the curve.
B)​movement downward along the curve.
C)​shift to the left.
D)​shift to the right.

Quizplus · Accepted Answer

If a non-price level determinant causes total spending to decrease, such as a decrease in government spending or a decrease in consumer confidence, then aggregate demand will shift to the left. This is because at every price level, there will be a lower quantity of goods and services demanded due to the decrease in overall spending.

If Some Non-Price Level Determinant Causes Total Spending to Decrease