For each of the examples below, determine the effect on aggregate demand. a. In order to reduce the deficit, the government decides to increase the level of taxes in the economy. This causes: multiple choice 1 a movement along the aggregate demand curve to the left, indicating a decrease in the quantity of real GDP demanded. an increase in aggregate demand, shifting the aggregate demand curve to the right. a decrease in aggregate demand, shifting the aggregate demand curve to the left. a movement along the aggregate demand curve to the right, indicating an increase in the quantity of real GDP demanded. b. The economy experiences a sustained expansion in stock prices for the majority of companies in the country. This causes: multiple choice 2 a movement along the aggregate demand curve to the right, indicating an increase in the quantity of real GDP demanded. a movement along the aggregate demand curve to the left, indicating a decrease in the quantity of real GDP demanded. a decrease in aggregate demand, shifting the aggregate demand curve to the left. an increase in aggregate demand, shifting the aggregate demand curve to the right.