The decrease in consumer spending that occurred after the collapse of the housing bubble caused:

Name: The decrease in consumer spending that occurred after the collapse of the housing bubble caused:
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The decrease in consumer spending would lead to a decrease in aggregate demand. As consumers spend less, businesses will produce less, and therefore, there will be a decrease in aggregate supply as well. However, the primary effect would be on aggregate demand.

The Decrease in Consumer Spending That Occurred After the Collapse