The recession of 2008-2009 was associated with a fall in housing prices which shifted aggregate demand to the left.

Question

Quizplus · Accepted Answer

The recession of 2008-2009, also known as the Great Recession, was significantly triggered by a fall in housing prices. This decline in housing prices reduced household wealth, leading to decreased consumer spending and investment by businesses, effectively shifting the aggregate demand curve to the left.

The Recession of 2008-2009 Was Associated with a Fall in Housing