Final answer:
When the public feels the economy is weak, it can lead to decreased consumer and business confidence, reduced consumption and investment, and a leftward shift in aggregate demand (AD), resulting in a decrease in GDP and the price level.
Step-by-step explanation:
When the public feels that the economy is weak, it can have several effects. For instance, consumer and business confidence may decrease, leading to reduced consumption and investment. This can result in a leftward shift in aggregate demand (AD), causing a decrease in GDP and the price level. Negative reports on home prices and consumer confidence can also make consumers feel pessimistic about the future and reduce consumer spending.