If there was a decrease in consumer savings due to an increase in consumer spending with no increase in the money released into circulation what will happen to the aggregate demand curve

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Physics

Kujo

24 January, 21:30

If there was a decrease in consumer savings due to an increase in consumer spending with no increase in the money released into circulation what will happen to the aggregate demand curve

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Danielle Church · Answer 1

The aggregate demand curve will also decrease. If supply is not high and there is no circulating income or monetary value that's happening in a particular market, then the demand of consumers will also go down. This is because the need for production is no longer necessary because there will be no consumers to purchase goods and services from the market.