Social Studies, 17.07.2020 22:01 anuel504
A strong negative wealth effect from, say, a precipitous drop in the stock market could cause a recession even though productivity is surging if aggregate demand shifts:
a. left, and aggregate supply shifts right and the magnitude of the supply shift is larger than that of the demand shift.
b. left, while aggregate supply shifts right, and the magnitude of the demand shift is larger than that of the supply shift.
c. left, and aggregate supply shifts left and the magnitude of the demand shift is larger than that of the supply shift.
d. right, while aggregate supply shifts left and the magnitude of the supply shift is larger than that of the demand shift
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