# Which set of events would most likely decrease aggregate demand?

## Which set of events would most likely decrease aggregate demand?

The correct answer is D; an increase in real interest rates. An increase in real interest rates reduces the investment expenditure as the cost of borrowing increases. It reduces aggregate spending, and therefore, aggregate demand.

## Which would be one of the factors that shift the aggregate demand curve a change in?

The aggregate demand curve tends to shift to the left when total consumer spending declines. Consumers might spend less because the cost of living is rising or because government taxes have increased. Consumers may decide to spend less and save more if they expect prices to rise in the future.

## What percentage of the average US firm’s costs is accounted for by wages and salaries?

Wage and salary costs averaged $33.76 and accounted for 62.0 percent of employer costs. Benefit costs averaged$20.70 and accounted for the remaining 38.0 percent of total compensation.

## Which of the following would most likely shift the aggregate demand curve to the right quizlet?

Which of the following would most likely shift the aggregate demand curve to the right? An increase in stock prices that increases consumer wealth. The aggregate supply curve: shows the various amounts of real output that businesses will produce at each price level.

## What is likely to cause a decrease in aggregate demand?

The aggregate demand curve tends to shift to the left when total consumer spending declines. Consumers might spend less because the cost of living is rising or because government taxes have increased. Consumers may decide to spend less and save more if they expect prices to rise in the future.

## Which event would most likely increase aggregate demand *?

Which would be one of the factors that increase aggregate demand? An increase in aggregate demand is most likely to be caused by a decrease in: the tax rates on household income.

## What factors can affect aggregate demand?

Factors that Affect Aggregate Demand

• Net Export Effect.
• Real Balances.
• Interest Rate Effect.
• Inflation Expectations.
• Aggregate Demand C + I + G + (X-M)
• Consumption.
• Investment.
• Government Spending.

## Which of the following would most likely reduce aggregate demand shift the AD curve to the left?

Which of the following would most likely reduce aggregate demand (shift the AD curve to the left)? An appreciation of the U.S. dollar. In an effort to avoid recession, the government implements a tax rebate program, effectively cutting taxes for households.