Which of the Following Could Cause a Leftward Shift of the Aggregate

question 31

Multiple Choice

Which of the following could cause a leftward shift of the aggregate demand (AD) curve?

• A)a decrease in autonomous government purchases
• B)a decrease in induced imports
• C)a decrease in the net tax rate
• D)a decrease in autonomous desired saving
• E)a decrease in the price level

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Definitions:

Critical Thinking

The process of actively analyzing, interpreting, synthesizing, and evaluating information to reach a conclusion.

Principles

Fundamental truths or propositions that serve as the foundation for a system of belief or behavior.

Psychologists

Professionals specialized in the study of the mind and behavior, engaging in research, diagnosis, and treatment of psychological disorders.

Federal Government

Federal Government denotes the national level of government, which has the authority to exercise government power over the entirety of a country, distinguishing it from state or local governments.