Question

In the past six months, has aggregate demand in the U.S shifted right or left? And...

In the past six months, has aggregate demand in the U.S shifted right or left? And what might have caused this shift and Is the shift due to changes in C, I, G, or NX

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Answer #1

Answer - In the recent period , there has been lockdown in the economy due to the corona virus pandemic. The workers have been laid down and production has be at hault. The rise in unemployment has led to fall in income level of people. Hence the Consumption , Investment in the economy have dradtically dropped. Due to hault in production , Exports have also declined. Altogether , there has been Decline and Leftward Shift in AD creating the recessionary gap in the economy

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