-Refer to Exhibit 8-3.A shift in aggregate demand from AD₂ to AD₁ could have been the result of A) a decrease in the price level. B) an increase in the price level. C) businesses become more optimistic about future sales. D) businesses become more pessimistic about future sales.

Question

Quizplus · Accepted Answer

A shift in aggregate demand from AD2 to AD1 indicates a decrease in aggregate demand. This could be caused by businesses becoming more pessimistic about future sales, leading to reduced investment and spending.