If aggregate demand shifts inward over a long period of time, with aggregate supply held constant, the economy should experience
A)unemployment.
B)recession.
C)stagflation.
D)inflation.
E)budget surpluses.

Question

Quizplus · Accepted Answer

A shift in aggregate demand inward over a long period of time suggests a reduction in overall spending in the economy. This can lead to a decrease in production, which could result in a recession, with reduced economic growth and higher unemployment rates.

If Aggregate Demand Shifts Inward Over a Long Period of Time