Within the Framework of the AD/AS Model, If Consumers and Investors

Multiple Choice

Within the framework of the AD/AS model, if consumers and investors become more pessimistic about the future direction of the economy, this will lead to

A) an increase in aggregate demand.
B) a decrease in aggregate demand.
C) an increase in long-run aggregate supply (LRAS shifts to the right) .
D) a reduction in the natural rate of unemployment.