The terrorist attacks in September 2001 reduced consumer confidence.Which of the following indicates the resulting change in the U.S.economy?
A) The economy moved up along the aggregate demand curve
B) The economy moved down along the aggregate demand curve
C) Aggregate demand shifted to the left
D) Aggregate demand shifted to the right

Question

Quizplus · Accepted Answer

The decrease in consumer confidence would result in a decrease in consumption spending, causing a decrease in aggregate demand. This would shift the aggregate demand curve to the left. Therefore, option C is the correct answer.

The Terrorist Attacks in September 2001 Reduced Consumer Confidence