Trinityprescottidn
Answered

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

A. a reduced amount of excess capacity
B. increased government spending on military equipment
C. an appreciation of the U.S. dollar
D. increased consumer optimism regarding future economic conditions

Sagot :

GinnyAnsweridn

Final answer:

Reducing excess capacity and an appreciating U.S. dollar decrease aggregate demand, while increased consumer optimism increases it.


Explanation:

A reduced amount of excess capacity is likely to reduce aggregate demand, shifting the AD curve to the left. When there is excess capacity, businesses are not producing at their maximum potential, leading to decreased spending and a shift in the AD curve towards the left.

An appreciation of the U.S. dollar would also reduce aggregate demand by making U.S. goods more expensive for foreign buyers, resulting in a decrease in exports and a leftward shift of the AD curve.

Increased consumer optimism regarding future economic conditions would lead to higher spending, shifting the AD curve to the right, not left.


Learn more about Aggregate Demand here:

https://brainly.com/question/34781298


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