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

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Definitions:

Personal

Relating to private individuals, their characteristics, or their circumstances without pertaining to their professional or public lives.

State And Local Income Taxes

Taxes imposed on income by state and/or local governments, varying greatly from one location to another.

General Sales Taxes

Taxes imposed on sales of goods and services, generally calculated as a percentage of the sales price.

Elect

To choose or decide upon a particular course of action, often used in the context of making tax-related decisions.