Asked by MIRTEMUR SHAKIROV on Jul 04, 2024
Verified
Refer to Scenario 35-1. The effects of the housing and financial crises could be shown by shifting
A) aggregate demand to the right.
B) aggregate demand to the left.
C) aggregate supply to the right.
D) aggregate supply to the left.
Housing and Financial Crisis
A period characterized by declining home prices, foreclosures, and a loss of value in financial instruments, leading to widespread economic instability.
World Prices
The prices of goods and services determined in the global market that influence the cost and availability of products internationally.
Aggregate Demand
The total amount of goods and services demanded in an economy at a given overall price level and time.
- Analyze the consequence of external elements such as shifts in oil pricing and economic recessions on the rates of inflation and unemployment.
Verified Answer
AL
Alexis LopezJul 11, 2024
Final Answer :
B
Explanation :
The effects of a housing and financial crisis typically reduce consumer wealth and confidence, leading to decreased spending. This would be represented by a shift of the aggregate demand curve to the left, as consumers and businesses reduce spending due to the crisis.
Learning Objectives
- Analyze the consequence of external elements such as shifts in oil pricing and economic recessions on the rates of inflation and unemployment.