Which of the following will cause a leftward shift in the aggregate demand curve?
A) a reduction in the money supply
B) an increase in taxes
C) a reduction in government spending
D) all of the above

Question

Quizplus · Accepted Answer

All of the choices listed - a reduction in the money supply, an increase in taxes, and a reduction in government spending - would decrease aggregate demand, leading to a leftward shift in the aggregate demand curve.

Which of the Following Will Cause a Leftward Shift in the Aggregate