Aggregate Demand Practice Test

AD shifts left from AD1 to AD2 due to lower consumer spending from worse expectations.

There is a movement down along AD1 due to lower consumer spending from worse expectations.

AD shifts right from AD1 to AD2 due to lower consumer spending from worse expectations.

There is a movement up along AD1 due to a higher price level lowering real spending.

AD shifts left from AD1 to AD2 due to higher resource prices that reduce output.