a. In early 2001 investment spending sharply declined in theUnited States. This event caused a

multiple choice 1

• rightward shift in aggregate demand, and more investment wouldhave caused a rightward shift in aggregate supply.

• rightward shift in aggregate demand, and lower investment wouldhave caused a leftward shift in aggregate supply.

• leftward shift in aggregate demand, and lower investment wouldhave caused a leftward shift in aggregate supply.

• leftward shift in aggregate demand, and less investment wouldhave caused a rightward shift in aggregate supply.

b. In the two months following the September 11, 2001,attacks on the United States, consumption also declined. This eventcaused a

multiple choice 2

• rightward shift in aggregate demand, and lower investment wouldhave caused a leftward shift in aggregate supply.

• leftward shift in aggregate demand, and lower investment wouldhave caused a leftward shift in aggregate supply.

• rightward shift in aggregate demand, and more investment wouldhave caused a rightward shift in aggregate supply.

• leftward shift in aggregate demand, and less investment wouldhave caused a rightward shift in aggregate supply.