When this occurred, consumer confidence in Europe declined. Consumer confidence impacts C$,$ a component of AD $($C$+$I$+$G$+$Nx$).$ This is shown by people reducing their spending, affecting both the British and the US economy by decreasing the DAD $($shift to the left$).$ When this curve shifts to the left, we expect US output to fall. We would also expect a slight decrease in the price levels.

Requirements:

$1)$ Post a link to any recent $(3-5$ years$)$ news article explaining a change in either DAD or DAS.

$2)$ Translate the article into the terms we used in this course. Identify which component of aggregate spending or aggregate supply is impacted and in which direction.

$3)$ Use the DAS$/$DAD model to predict the impact to price levels and output.