What could a recession result from?
A)an increase in long-run aggregate supply
B)a decrease in aggregate demand
C)an increase in short-run aggregate supply
D)an increase in aggregate demand

Question

Quizplus · Accepted Answer

A recession is typically characterized by a decline in economic activity, including decreases in overall consumption and investment. This can result from a decrease in aggregate demand, as consumers and businesses cut back on spending due to factors such as high interest rates, low consumer confidence, or economic uncertainty. A decrease in aggregate demand can also lead to a decrease in employment and wages, which can further exacerbate the economic downturn. While changes in aggregate supply can impact economic growth and prices, they are less likely to lead to a recession on their own.

What Could a Recession Result From