Sales of large pickup trucks built in Ontario were hurt in 2016 as a result of the economic slow down in Alberta.How would this decrease in affect Ontario's aggregate demand curve?
A)Ontario's aggregate demand curve would have shifted to the right.
B)Ontario's aggregate demand curve would not have shifted, but there would have been a movement up Ontario's aggregate demand curve.
C)Ontario's aggregate demand curve would not have shifted, but there would have been a movement down Ontario's aggregate demand curve.
D)Ontario's aggregate demand curve would have shifted to the left.
E)Ontario's aggregate demand curve would have shifted to the right and there would have been a movement up Ontario's aggregate demand curve.

Question

Quizplus · Accepted Answer

The decrease in sales of large pickup trucks built in Ontario would result in a decrease in demand for goods and services in the province, which would shift the aggregate demand curve to the left. This is because households and businesses in Alberta would have had less income to spend on goods and services from Ontario, leading to a decrease in the overall demand for these products.

Sales of Large Pickup Trucks Built in Ontario Were Hurt