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QUESTION:
In the model of aggregate demand and aggregate supply, the initial impact of a decrease in consumer optimism is to _______.
a. shift short-run aggregate supply to the right
b. shift short-run aggregate supply to the left
c. shift aggregate demand to the right
d. shift aggregate demand to the left
e. shift long-run aggregate supply to the right
ANSWER:
d. shift aggregate demand to the left
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