German automobile exports were hurt in 2008 as a result of the recession.How would this decrease in exports have affected Germany's aggregate demand curve?
A)The aggregate demand curve would have shifted to the right.
B)The aggregate demand curve would not have shifted,but there would have been a movement up the aggregate demand curve.
C)The aggregate demand curve would not have shifted,but there would have been a movement down the aggregate demand curve.
D)The aggregate demand curve would have shifted to the left.

Question

Quizplus · Accepted Answer

A decrease in exports would have led to a decrease in income and employment in the exporting industries, leading to a decrease in consumption, investment, and government spending. This would result in a leftward shift in the aggregate demand curve.

German Automobile Exports Were Hurt in 2008 as a Result