German luxury car exports were hurt in 2009 as a result of the recession.How would this decrease in exports have affected Germany's aggregate demand curve?
A)The aggregate demand curve would have shifted to the right.
B)The aggregate demand curve would not have shifted,but there would have been a movement up the aggregate demand curve.
C)The aggregate demand curve would not have shifted,but there would have been a movement down the aggregate demand curve.
D)The aggregate demand curve would have shifted to the left.

Question

Quizplus · Accepted Answer

A decrease in exports of luxury cars would result in a decrease in income and a decrease in demand for luxury goods. This would lead to a decrease in the overall demand for goods and services in the economy, causing a leftward shift in the aggregate demand curve.

German Luxury Car Exports Were Hurt in 2009 as a Result