All of the following are likely reasons for the 2007-09 recession in the United States except
A)a rightward shift of the AD curve.
B)an upward shift of the IA line.
C)an increase in potential GDP.
D)a decrease in potential GDP.
E)an increase in aggregate supply.

Question

Quizplus · Accepted Answer

A rightward shift of the AD curve would typically indicate an increase in aggregate demand, which would not be a reason for a recession.

All of the Following Are Likely Reasons for the 2007-09