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

Question

Quizplus · Accepted Answer

The aggregate demand curve shifting leftward would cause a recession because it would lead to a decrease in overall spending in the economy, which would in turn lead to a decrease in output and employment.

Which of the Following Would Cause a Recession