I think of it this way: the aggregate demand curve is just the sum of all of the household demand curves in the country. Unfortunately, it's a form of average, in that you can't see the demand curves of the vast lower and middle classes separated from the demand curve for the wealthier classes. I suspect that for the top and bottom of the income spectrum, the demand curves are basically vertical. The poor have very little opportunity to change their consumption and for the wealthy gas is too cheap to think about.

That leaves the middle of the income spectrum that can change their demand. Unfortunately, that portion of the population has been shrinking over time, and I suspect their changes in consumption are simply being drowned out by increasing populations of lower income people and the wealthy who are ignoring the prices. We either need more time for the middle class to make adjustments, or higher prices to force the lower income population to stop driving.

The big reduction I expect to see is in the commercial sector. Eventually the reduction in construction will result in less consumption for business. I don't think most people understand how much of a bubble we've had in real estate. We need far more builders, lenders, and real estate agents to lose their jobs before we clear out this overhang. Of course, that probably means a recession as well, as in the early 70s. The stagflation is so painfully obvious now, it's a wonder the word isn't on the front pages of the papers.