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During a Recession Consumption Falls,causing the Aggregate Demand Curve to Shift

Question 51

Multiple Choice

During a recession consumption falls,causing the aggregate demand curve to shift to the ________.In response,the government can increase government spending to shift the ________.


A) left; aggregate demand (AD) curve to the right
B) left; short-run aggregate supply (SRAS) curve to the right
C) right; aggregate demand (AD) curve to the left
D) right; short-run aggregate supply (SRAS) curve to the right
E) left; long-run aggregate supply (LRAS) curve to the right

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