Refer to the information provided in Figure 18.1 below to answer the questions that follow. Figure 18.1 -Refer to Figure 18.1.According to the monetarists,a recession can be caused when A)AD₁ shifts to the right. B)AD₁ shifts to the left. C)AS₁ shifts to the left. D)LRAS shifts to the left.

Question

Quizplus · Accepted Answer

According to the monetarists, a recession can be caused when the aggregate demand (AD₁) shifts to the left. This is because a decrease in aggregate demand leads to a decrease in output and GDP, which can lead to a recession.

Refer to the Information Provided in Figure 18