A News Wire article in the text is titled "Consumer Index Sinks to an All-Time Low." Which of the following is most likely to happen as a result of decreased consumer spending?
A) A leftward shift of aggregate supply.
B) A rightward shift of aggregate supply.
C) A leftward shift of aggregate demand.
D) A rightward shift of aggregate demand.

Question

Quizplus · Accepted Answer

A decrease in consumer spending leads to a decrease in overall demand for goods and services in the economy, which is represented by a leftward shift of the aggregate demand curve.

A News Wire Article in the Text Is Titled "Consumer