Question

Which of the following would cause the aggregate demand curve to shift to the left?

Group of answer choices

an advance in technology

a reduction in government funding for education

an increase in energy prices (oil, natural gas, etc.)

an increase in the money supply

Answer 1

Demand is always from the consumer side not from the producer side

An increase in technology will benefit the suppliers because this will cause the reduction in the production costs and the aggregate supply will shift right.

A reduction in government funding for education will leads to less money investment and this will impact the supply as human capital

An increase in money supply will lead to more demand because of more money in the hands of common people and businesses

Only in option C in which if there is increase in the energy prices then people will demand it less and this will cause the shift of demand curve to the left due to decrease in the demand

Hence answer is option C