If you noticed that fashion models were wearing longer skirts, the local store was sold out of lipstick, and skinny ties were all you saw for sale, it might be reasonable to assume
A)the aggregate demand curve was shifting left.
B)the aggregate demand curve was shifting right.
C)the federal government was in control of fashion.
D)the aggregate demand had a positive slope.
E)the aggregate supply curve was shifting left.

Question

Quizplus · Accepted Answer

These observations suggest a trend towards more conservative spending and possibly a downturn in economic confidence, which can lead to a decrease in aggregate demand, hence the shift to the left.

If You Noticed That Fashion Models Were Wearing Longer Skirts