Recession in SA will cause
A)an upward movement along the SA aggregate demand curve.
B)a downward movement along the SA aggregate demand curve.
C)the SA aggregate supply curve to shift to the right.
D)the SA aggregate demand curve to shift to the left.

Question

Quizplus · Accepted Answer

During a recession, there is a decrease in consumer and business spending which leads to a decrease in demand. This causes a leftward shift in the aggregate demand curve. Therefore, the best choice is D.

Recession in SA Will Cause