In the summer of 2008,consumers indicated that they were less optimistic about the future of the economy.Such a change in sentiment is likely to
A)shift aggregate demand to the left.
B)increase output.
C)decrease unemployment.
D)increase prices.

Question

Quizplus · Accepted Answer

A decrease in consumer optimism would lead to a decrease in consumer spending, which would shift the aggregate demand curve to the left. This would result in a decrease in output and could increase unemployment. Prices may also decrease due to the decrease in consumer demand.

In the Summer of 2008,consumers Indicated That They Were Less