A weakening in consumer confidence causes a
A) shift of the aggregate demand curve to the right.
B) shift of the aggregate demand curve to the left.
C) movement up along the aggregate demand curve.
D) movement down along the aggregate demand curve.

Question

Quizplus · Accepted Answer

A weakening in consumer confidence means that consumers are less likely to spend money, leading to a decrease in consumption and therefore a decrease in aggregate demand. This would result in a shift of the aggregate demand curve to the left.

A Weakening in Consumer Confidence Causes a