The aggregate demand curve will shift to the left when which of the following occurs?
A)an increase in the money supply.
B)an increase in consumer confidence.
C)a reduction in the price level.
D)an increase in taxes.
E)a rise in the price level.

Question

Quizplus · Accepted Answer

An increase in taxes decreases disposable income, which decreases consumption spending, leading to a decrease in aggregate demand.

The Aggregate Demand Curve Will Shift to the Left When