Explain whether each of the following will cause a shift of the AD curveLOADING... or a movement along the AD curve. a. Firms become more optimistic and increase their spending on machinery and equipment. Because this is a change in ▼ the price level net exports government spending consumption investment , it will cause a ▼ shift to the right in shift to the left in movement along the aggregate demand curve. b. The federal government increases taxes in an attempt to reduce a budget deficit. Because this is a change in ▼ net exports consumption investment government spending the price level , it will cause a ▼ movement along shift to the left in shift to the right in the aggregate demand curve. c. The U. S. economy experiences 4 percent inflation. Because this is a change in ▼ the price level government spending net exports investment consumption , it will cause a ▼ shift to the right in shift to the left in movement along the aggregate demand curve