Other things being equal, which of the following can cause a recession?
A. An increase in aggregate demand
B. An increase in aggregate supply
C. A decrease in aggregate demand
D. An increase in potential real GDP
Answer: C
Other things being equal, which of the following can cause a recession?
A. An increase in aggregate demand
B. An increase in aggregate supply
C. A decrease in aggregate demand
D. An increase in potential real GDP