When most consumers and firms reduce spending only because they expect other consumers and firms

Question

When most consumers and firms reduce spending only because they expect other consumers and firms
to reduce spending, and a recession results,
A. a self-correction has occurred.
B. an adverse aggregate supply shock has occurred.
C. a coordination failure has occurred.
D. a real-business-downturn has occurred.

I believe my answer is B

bobpursley · Accepted Answer

Give the answer B, and it will be marked wrong. What is a coordination failure?

Fatima · Answer

A situation in which do not reach a mutually beneficial outcome because they lack some way to jointly coordinate their actions; a possible cause of macroeconomics instability.