The March 2000 "tech bubble" burst caused the aggregate demand curve to shift to the left by ________.
A)causing an upward spike in the real interest rate
B)reducing autonomous spending by households and businesses
C)reducing government spending on high-tech equipment
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

The burst of the tech bubble in March 2000 led to a reduction in autonomous spending by households and businesses due to decreased confidence and wealth, which in turn caused the aggregate demand curve to shift to the left.

The March 2000 "Tech Bubble" Burst Caused the Aggregate Demand