Which of the following would cause a recession?
A) The long-run aggregate supply curve shifts rightward.
B) The aggregate demand curve shifts rightward.
C) The short-run aggregate supply curve shifts leftward.
D) The price level increases.

Question

Quizplus · Accepted Answer

A recession is typically caused by a decrease in aggregate supply or demand, leading to lower output and higher unemployment. Option C, where the short-run aggregate supply curve shifts leftward, directly corresponds to a decrease in aggregate supply, which can cause a recession by reducing the quantity of goods and services produced in an economy.

Which of the Following Would Cause a Recession