Figure: Aggregate Demand Shifts 3 
Refer to the figure.If the government lowers its spending growth so that the AD curve shifts from AD1 to AD2,the multiplier effect will cause the AD curve to:
Definitions:
School Vouchers
Government-funded programs that allow parents to use public financing allocated for their child's education to send their child to a school of choice, including private and charter schools.
Comprehensive Preschools
Educational institutions that provide a wide range of services and learning experiences aimed at the development of young children, often including health, nutrition, and family support.
School Budgets
Financial plans that outline expected income and expenses for educational institutions over a specific period.
Voucher System
A policy or system in which vouchers are given, typically by the government, to individuals to purchase specific services or goods.
Q14: (Figure: Monetary Policy and Demand Shocks)Refer to
Q39: Other things being equal,a decrease in government
Q78: In the absence of monetary intervention following
Q83: U.S.marginal tax rates today are lower and
Q85: Which of the following would NOT prevent
Q149: Explain the difference between an average tax
Q162: Well over half of all tax revenue
Q171: When expansionary fiscal policy subsequently increases income
Q239: Beginning in 1995,many European nations gave up
Q240: Purchasing power parity is more likely to