The global financial panic in September 2008 which led to a sharp fall in business investment spending and consumer spending can be viewed as
A)a sharp decrease in aggregate supply
B)a sharp decrease in aggregate demand
C)a sharp decrease in both aggregate supply and aggregate demand
D)a modest increase in aggregate supply
E)no change in either aggregate supply or aggregate demand

Question

Quizplus · Accepted Answer

The global financial panic led to a decrease in aggregate demand as consumers and businesses became cautious and reduced their spending. This also led to a decrease in business investment spending due to the uncertainty in the market.

The Global Financial Panic in September 2008 Which Led to a Sharp