The widespread problems in financial markets during the Great Recession negatively affected key institutions in the macroeconomy.In addition,the financial regulations that were put in place restricted banks' ability to lend at levels equal to those in effect prior to 2008.This resulted in:
A) a shift leftward of the aggregate demand curve.
B) a shift leftward of the long-run aggregate supply curve.
C) a shift rightward of the long-run aggregate supply curve.
D) a shift rightward of the aggregate demand curve.
E) a shift rightward of the short-run aggregate supply curve.
Correct Answer:
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