Final answer:
The aggregate demand curve will shift to the left with a decrease in government spending, an increase in taxes, or a decrease in consumer confidence. All of the provided options will result in a lower quantity of output and a lower price level at the new equilibrium.
Step-by-step explanation:
The question concerns factors that can cause the aggregate demand curve to shift. In economics, the aggregate demand (AD) curve represents the total demand for goods and services in an economy at different price levels. Various factors can cause the AD curve to shift either to the right, indicating an increase in aggregate demand, or to the left, signifying a decrease.
Considering the options given:
- A decrease in government spending would reduce overall demand in the economy, thus shifting the AD curve to the left.
- An increase in taxes tends to reduce disposable income for consumers, leading to a decrease in consumer spending and, consequently, shifting the AD curve to the left.
- A decrease in consumer confidence normally leads to a reduction in consumer spending as individuals prefer to save rather than spend, which also causes the AD curve to move to the left.
Therefore, all of the above statements will indeed shift the aggregate demand curve to the left. This shift would result in a new equilibrium with a lower quantity of output and a lower price level compared with the original equilibrium, as well as a position farther below potential GDP.