Scenario 1 – Pessimism Suppose the economy is in long-run equilibrium. Then because of corporate scandal, international…

Scenario 1 – Pessimism Suppose the economy is in long-run equilibrium. Then because of corporate scandal, international tensions, and loss of confidence in policymakers, people become pessimistic regarding the future and retain that level of pessimism for some time. Scenario 1 – Pessimism.  Which curve shifts and in which direction? aggregate demand shifts right aggregate demand shifts left aggregate supply shifts right. aggregate supply shifts left.