If a stock market bubble bursts:
A) aggregate demand in the economy decreases.
B) aggregate demand in the economy increases.
C) aggregate supply in the economy decreases.
D) aggregate supply and demand in the economy decrease.

Question

Quizplus · Accepted Answer

When a stock market bubble bursts, it typically leads to a decrease in wealth and consumer confidence, which can reduce aggregate demand as people and businesses cut back on spending.

If a Stock Market Bubble Bursts