Scenario 35-1
Suppose that in the first half of June 2022, the effects of a housing and financial crisis and an increase in world prices of oil and foodstuffs were affecting the economy.
-Refer to Scenario 35-1. The effects of the housing and financial crises could be shown by shifting
A)aggregate demand to the right.
B)aggregate demand to the left.
C)aggregate supply to the right.
D)aggregate supply to the left.

Question

Quizplus · Accepted Answer

The effects of a housing and financial crisis typically reduce consumer wealth and confidence, leading to decreased spending. This would be represented by a shift of the aggregate demand curve to the left, as consumers and businesses reduce spending due to the crisis.

Scenario 35-1 Suppose That in the First Half of June 2022, the 2022