-Using the above figure as a starting point, a recession in the monetarist model would begin with a
A) rightward shift in the AD curve.
B) leftward shift in the AD curve.
C) leftward shift in the SAS curve.
D) leftward shift in the LAS curve.

Question

-Using the above figure as a starting point, a recession in the monetarist model would begin with a
A) rightward shift in the AD curve. 
B) leftward shift in the AD curve. 
C) leftward shift in the SAS curve. 
D) leftward shift in the LAS curve.

Quizplus · Accepted Answer

In the monetarist model, a recession would begin with a leftward shift in the Aggregate Demand (AD) curve, indicating a decrease in the total demand for goods and services in the economy.

-Using the Above Figure as a Starting Point, a Recession