Which of the Following Actions Would Cause the Aggregate Demand

question 83

Multiple Choice

Which of the following actions would cause the aggregate demand curve to shift to the left?

• A) an increase in consumer spending caused by a cut in the personal income tax rate
• B) an increase in government spending caused by increased spending on highways and bridge construction
• C) a decrease net export spending caused by an appreciation of the home currency
• D) an increase in exports caused by an increase in economic activity in the European Union

---

Definitions:

Psychology

The scientific study of the mind and behavior, encompassing various aspects of human experience, cognition, emotion, and social interactions.

Reductionist

An approach that simplifies complex phenomena by breaking them down into their most basic components for analysis.

Physiological Factors

Aspects related to the physical or biological conditions of an organism that influence its function or behavior.

Emotional Experiences

The subjective feelings and reactions one undergoes during significant events or in response to stimuli, characterized by affective states.