Figure
The Economy in 2008
In the first half of June 2008 the effects of a housing and financial crisis and an increase in world prices of oil and foodstuffs were impacting the economy.
-Refer to the Economy in 2008.In the short-run the housing and financial crises

Question

Quizplus · Accepted Answer

In the short-run, the housing and financial crises would likely lead to a decrease in aggregate demand, reducing both the price level and output as consumers and businesses cut back on spending and investment.

Figure The Economy in 2008