A major that resulted in the leftward shift of the aggregate demand curve in late 2008 was
A)a decrease in taxes.
B)an increase in government spending.
C)a price shock.
D)a change in net exports.
E)a decrease in consumer confidence.

Question

Quizplus · Accepted Answer

A decrease in consumer confidence results in a decrease in consumption spending, which is a component of aggregate demand. This causes the aggregate demand curve to shift leftward.

A Major That Resulted in the Leftward Shift of the Aggregate