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The Recession of 2008-2009 Made Many Firms Pessimistic About the Future

Question 219

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The recession of 2008-2009 made many firms pessimistic about the future profitability of investments.How does this increased pessimism affect the aggregate demand curve?


A) This will move the economy up along a stationary aggregate demand curve.
B) This will move the economy down along a stationary aggregate demand curve.
C) This will shift the aggregate demand curve to the left.
D) This will shift the aggregate demand curve to the right.
E) This will shift the aggregate supply curve to the right.

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