During the Great Recession,________ caused long-run aggregate supply to decrease.
A) an increase in international trade
B) an advance in technology
C) financial market turmoil
D) an increase in the U.S.labor force
E) an increase in the money supply

Question

Quizplus · Accepted Answer

Financial market turmoil, including the housing market collapse and the banking crisis, led to a decrease in investment and consumer confidence, which in turn caused a decrease in the long-run aggregate supply.

During the Great Recession,________ Caused Long-Run Aggregate Supply to Decrease