The leftward shift of the aggregate demand curve in 2007 is explained in part by
A)a change in net exports.
B)a sharp increase in oil prices.
C)a decrease in government spending.
D)a change in monetary policy.
E)an increase in taxes.

Question

Quizplus · Accepted Answer

A sharp increase in oil prices can lead to a decrease in consumer spending and investment, which will cause a leftward shift of the aggregate demand curve.

The Leftward Shift of the Aggregate Demand Curve in 2007