The 2001 terrorist attack reduced U.S. aggregate demand in part because it led to

Question

Quizplus · Accepted Answer

The terrorist attack on September 11, 2001, caused a decline in consumer confidence. The event resulted in widespread fear and uncertainty about the future, leading consumers to cut back on spending. This reduction in consumer spending decreased aggregate demand in the U.S. economy. The other options, including higher insurance premiums, stronger labor unions, and lower oil prices, are not directly related to the decrease in aggregate demand caused by the terrorist attack.

The 2001 Terrorist Attack Reduced U