Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 33 - Part XII - Aggregate Demand and Aggregate Supply - Questions for Review - Page 741: 6

Answer

The aggregate demand curve can shift to the left when there is a reduction in consumption spending ( keep in mind this does not include rise in price level) factors such as: increased savings, less investment spending, less government spending, and reduction in net exports can shift the aggregate supply.

Work Step by Step

To solve this simply recognize that aggregate demand will not be SHIFTED by changes in price levels but will be by other factors. Think to yourself what factors? Some are listed above.
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