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

Multiple Choice

Which of the following most accurately describes the behavior of the U.S. economy during the 2001 recession?

A) Aggregate demand fell as business investment declined while aggregate supply rose as a result of continued productivity growth.
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.