Answer: Option 4 an increase in business taxes
Explanation:
When there is a increase in price level it does affect the aggregate supply curve and not the aggregate demand curve. When there is an increase of the government spending then the aggregate demand will also increase. Consumer confidence does not have any effect on the aggregate demand in the economy.
As the tax increases the consumer pockets will be cut down so that will eventually cut down the consumer spending. When the consumer spending is reduced then the aggregate demand will also decrease in the economy.
