How can a change in consumption that results in higher unemployment be shown on an aggregate demand and aggregate supply diagram?
- Aeffect on AD: movement down the demand curve; effect on AS: shift outwards
- Beffect on AD: movement up the demand curve; effect on AS: shift inwards
- Ceffect on AD: shift inwards; effect on AS: movement down the supply curve
- Deffect on AD: shift inwards; effect on AS: movement up the supply curve