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Loraine Loraine
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9 years ago
If firms' expectations about the future become pessimistic so that they think future profits will be lower, then
A) aggregate demand decreases and the AD curve shifts leftward.
B) aggregate demand increases and the AD curve shifts rightward.
C) the quantity of real GDP demanded decreases, and there is a movement up along the AD curve.
D) the quantity of real GDP demanded increases, and there is a movement down along the AD curve.
E) the aggregate demand curve does not shift, but potential GDP decreases.
Textbook 
Essential Foundations of Economics

Essential Foundations of Economics


Edition: 7th
Authors:
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Start by doing what's necessary; then do what's possible; and suddenly you are doing the impossible.
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SydnieSydnie
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