A decrease in consumer spending can be expected to shift the aggregate demand curve ________.

Business

1 answer:

xxMikexx [17]3 years ago

6 0

Answer:

d. downward and cause output to decrease

Explanation:

As we know that

Aggregate demand = Consumption expenditure + government expenditure + net export

Where,

Net export = Export - import

In the case when there is a reduction in the consumer spending so it would be expected that the aggregate demand curve would be shifted to the downward due to which it results in reduction in output

Therefore the option d is correct

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