During the recession of 2008-09, _____.
A)the long-run aggregate supply curve shifted to the right
B)the long-run aggregate supply curve shifted to the left
C)the short-run aggregate supply curve shifted to the right
D)the aggregate demand curve shifted to the right
E)the aggregate demand curve shifted to the left

Question

During the recession of 2008-09, _____.​
A)the long-run aggregate supply curve shifted to the right
B)the long-run aggregate supply curve shifted to the left
C)the short-run aggregate supply curve shifted to the right
D)the aggregate demand curve shifted to the right
E)the aggregate demand curve shifted to the left

Quizplus · Accepted Answer

During a recession, there is a decrease in consumer and business confidence, resulting in a decrease in aggregate demand. This leads to a leftward shift in the aggregate demand curve, causing a decrease in real GDP and thereby contributing to a decrease in economic growth.

During the Recession of 2008-09, _____.​

During the Recession of 2008-09, _____.