The correct answer is:
Recession
A decrease in aggregate demand can lead to a recession because it typically results in reduced economic activity, lower output, and higher unemployment.
Multiple choice question.
Recession
Potential output is less than actual output
Higher expected returns on investment
Full employment
1 answer
The correct answer is:
Recession
A decrease in aggregate demand can lead to a recession because it typically results in reduced economic activity, lower output, and higher unemployment.