The Widespread Problems in Financial Markets During the Great Recession

Multiple Choice

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 shift ________ of the ________ curve.

A) leftward; aggregate demand
B) leftward; long-run aggregate supply
C) rightward; long-run aggregate supply
D) rightward; aggregate demand
E) rightward; short-run aggregate supply