The Great Recession is characterized by a decrease in aggregate demand.A(n)________ in ________ would have caused such a decrease.

Question

Quizplus · Accepted Answer

Consumer sentiment refers to how optimistic or pessimistic people are about the economy and their own financial situation. If consumers are pessimistic about the economy, they will be less likely to spend money, which will decrease aggregate demand. Therefore, a decrease in consumer sentiment would lead to a decrease in aggregate demand, which is a characteristic of the Great Recession.

The Great Recession Is Characterized by a Decrease in Aggregate