Increased uncertainty and pessimism about the future of the economy lead firms to desire less investment spending which shifts the aggregate-demand curve to the left.

Question

Quizplus · Accepted Answer

Increased uncertainty and pessimism about the future economy make firms less inclined to invest in new projects or expansion, reducing the overall demand for goods and services, which is represented by a leftward shift in the aggregate-demand curve.

Increased Uncertainty and Pessimism About the Future of the Economy