As the aggregate demand curve shifts leftward along a given aggregate supply curve,
A)unemployment and inflation are higher.
B)unemployment and inflation are lower.
C)unemployment is higher and inflation is lower.
D)unemployment is lower and inflation is higher.

Question

Quizplus · Accepted Answer

When the aggregate demand curve shifts leftward along a given aggregate supply curve, it indicates a decrease in both real GDP and price level. This means unemployment is higher, but inflation is lower.

As the Aggregate Demand Curve Shifts Leftward Along a Given