A decrease in consumption growth will cause:
A) AD to shift to the left.
B) SRAS to shift to the left.
C) LRAS to shift to the left.
D) AD,SRAS,and LRAS to shift to the left.

Question

Quizplus · Accepted Answer

A decrease in consumption growth means that people are spending less, which will result in a decrease in demand for goods and services. This will cause AD (aggregate demand) to shift to the left, as there is less demand for the products which will result in lower prices being offered.

A Decrease in Consumption Growth Will Cause