If There Is Speculation That the Economy Will Soon Enter

Multiple Choice

If there is speculation that the economy will soon enter a recession, which means that our incomes will probably fall, then the immediate effect on the economy now will be that the

A) aggregate supply curve will shift to the left.
B) aggregate demand curve will shift to the right.
C) price level will rise and real output will rise.
D) price level will fall and real output will fall.