Which of the following is most likely to happen if the aggregate demand curve for an economy (which was initially in equilibrium)shifts to the left?
A)The equilibrium real GDP will decrease.
B)The equilibrium price level in the economy will increase.
C)The aggregate supply curve will shift rightward.
D)The aggregate supply curve will shift leftward.
E)The economy will experience an expansion.

Question

Quizplus · Accepted Answer

If the aggregate demand curve shifts to the left, it means that there is a decrease in demand for goods and services. This will lead to a decrease in the equilibrium level of real GDP, as there will be less demand for goods and services, resulting in lower production levels.

Which of the Following Is Most Likely to Happen If