Which Government Action Will Shift the Aggregate Demand Left

question 25

Multiple Choice

Which government action will shift the aggregate demand left?

• A) a decrease in taxes
• B) a decrease in the money supply
• C) signing a free trade agreement
• D) repealing an import tariff

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Definitions:

Buffer

A temporary storage area or a means to mitigate the impact of something negative.

Line of Reasoning

A logical sequence of statements or explanations that lead to a conclusion or understanding.

Bad News

Communication that conveys unfavorable, disappointing, or upsetting information to the recipient.

Transaction

An exchange or interaction between two parties, typically involving the buying, selling, or trading of goods, services, or information.