Question

Concern about an international crisis has caused consumers to save their money and postpone big purchases. what is the effect on aggregate demand and aggregate supply?

Answer 1

I gotchu Fam
"Aggregrate demand will decrease, lowering both real GDP and price level"

Answer 2

Had to look for the options and here is my answer.
The issue about the international crisis made a great impact on consumers and this made them save their money and postponed big purchases. How this affected on aggregate demand and aggregate supply is that aggregate supply will decrease, which would lower both the price level and the real GDP. Hope this helps.