There are many actions that will cause the aggregate demand curve to shift

There are many actions that will cause the aggregate demand curve to shift

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There are many actions that will cause the aggregate demand curve to shift. When the  aggregate demand curve shifts to the left, the total quantity of goods and services  demanded at any given price level falls. This can be thought of as the economy  contracting.  To understand what causes the economy to contract, let's start with the basic equation  for the demand curve. Recall that the price level is not directly in the equation for  aggregate demand. Rather, it is implicit in each of the terms in the equation. We know  that aggregate demand is comprised of C(Y - T) + I(r) + G + NX(e) = Y. Thus, a  decrease in any one of these terms will lead to a shift in the aggregate demand curve to  the left.  The first term that will lead to a shift in the aggregate demand curve is C(Y - T). This  term states that consumption is a function of disposable income. If disposable income 
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