If businesses in general decide that they have overbuilt and so now have too much capital,their response to this would initially shift
A)aggregate demand right.
B)aggregate demand left.
C)aggregate supply right.
D)aggregate supply left.

Question

Quizplus · Accepted Answer

If businesses have overbuilt and have too much capital, they may reduce their investment in capital goods and cut back on production. This would lead to a decrease in aggregate demand, shifting it to the left.

If Businesses in General Decide That They Have Overbuilt and So