Which of the following will shift the aggregate demand curve to the left? a. An increase in exports b. An increase in investment c. An increase in government spending d. A decrease in government spending

In order to determine which action will shift the AD to the left, we first need to understand the components of aggregate demand. Aggregate demand is the sum of consumption (C), investment (I), government spending (G), and net exports (NX). In mathematical terms: \[AD = C + I + G + NX\]

Now that we know the components of aggregate demand, we will analyze each action (a, b, c, and d) to determine the impact on aggregate demand: a. An increase in exports: Since exports are part of net exports (NX), an increase in exports will increase NX and therefore increase AD. So, this action will shift AD to the right. b. An increase in investment: Investment (I) is also a component of aggregate demand. Therefore, an increase in investment will increase AD, shifting the curve to the right. c. An increase in government spending: Government spending (G) is another component of aggregate demand. An increase in government spending will increase AD, shifting the AD curve to the right. d. A decrease in government spending: As mentioned earlier, government spending is a component of AD. Therefore, a decrease in government spending will cause aggregate demand to decrease, shifting the AD curve to the left.

From the analysis above, we can conclude that the action that will shift the aggregate demand curve to the left is: \(d. A decrease in government spending.\)