Which of the Following Most Accurately Describes the Behavior of the U.S.economy

Multiple Choice

Which of the following most accurately describes the behavior of the U.S.economy during the 2007-2009 recession?

A) Aggregate demand fell as business investment and consumer spending declined, which put downward pressure on prices, shifting SRAS to the right.
B) Aggregate demand fell primarily as a result of reduced consumption while aggregate supply increased due to continued growth in productivity.
C) Aggregate demand fell due to a reduction in business investment while aggregate supply declined due to a reduction in productivity.
D) Aggregate demand fell due to the bursting of the housing bubble while aggregate supply fell due to slower productivity growth.