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 ▼ government spending investment the price level consumption net exports , it will cause a ▼ movement along shift to the left in shift to the right in the aggregate demand curve. b. The federal government increases taxes in an attempt to reduce a budget deficit. Because this is a change in ▼ the price level consumption government spending investment net exports , 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 ▼ net exports the price level investment consumption government spending , it will cause a ▼ movement along shift to the right in shift to the left in the aggregate demand curve.