Decreasing funding for space exploration will shift the _____ curve to the _____.
A) short-run aggregate supply; left
B) short-run aggregate supply; right
C) aggregate demand; left
D) aggregate demand; right

Question

Quizplus · Accepted Answer

Decreasing funding for space exploration will decrease the production and investments in the space industry, which will decrease the overall demand for goods and services, shifting the aggregate demand curve leftward. This will lead to a decrease in the output and employment level in the short run.

Decreasing Funding for Space Exploration Will Shift the _____ Curve