A sudden increase in business pessimism shifts the aggregate demand curve, leading lower output.
What is aggregate demand curve?
The total amount spent on domestic goods and services in an economy is known as aggregate demand.
The relationship between the amount of total spending in the economy and the price level for products is depicted by the aggregate demand curve's downward slope.
Aggregate demand includes all four components of demand:
Consumption
Investment
Government spending
Net exports—exports minus imports
To know know about aggregate demand supply,
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