Which of the following should be expected to shift the aggregate demand curve to the left?...

Question

Question

Which of the following should be expected to shift the aggregate demand curve to the left?

A) an increase in government spending.

B) a reduction in net exports.

C) a reduction in labor force participation.

D) the adoption of an improved production technology.

E) a reduction in the value of the dollar.

Answer 1

Answer #1

Answer

Option B

B) a reduction in net exports.

an increase in government spending shifts aggregates demand curve to the right.

a reduction in net exports shifts aggregates demand curve to left.

a reduction in the labor force participation shifts long-run aggregate supply and SRAS to the left.

the adoption of improved technology shifts the aggregate supply to right.

the reduction in the value of the dollar has no effect on it as it is mesure in the real dollars.

Answer 2

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