A decline in the equilibrium level of GDP is most likely to be caused by:
A)a downshift in the investment schedule.
B)an upshift in the investment schedule.
C)a downshift in the consumption schedule.
D)an upshift in the saving schedule.

Question

Quizplus · Accepted Answer

A downshift in the investment schedule will decrease aggregate demand (AD) at every price level. This causes a leftward shift of the AD curve, resulting in a decrease in the equilibrium level of GDP.

A Decline in the Equilibrium Level of GDP Is Most