The leftward shift of the AD curve during 2007 occurred partly because of
A)higher net exports.
B)a balanced federal government budget.
C)an increase in consumer confidence.
D)a stock market crash.
E)the Fed lowering interest rates.

Question

Quizplus · Accepted Answer

The stock market crash caused a decrease in wealth and confidence among consumers, leading to lower consumer spending and a leftward shift in the AD curve.

The Leftward Shift of the AD Curve During 2007 Occurred