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26 September, 18:48

you read a news article reporting that a nations real output fell while its inflation rate temporarily jumped up. From this you can conclude that the recession was likely caused by which of these scenarios?

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  1. 26 September, 22:42
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    The correct answer to the following question is "decrease in aggregate supply".

    Explanation:

    A decrease throughout the aggregate supply would change the demand for labor to either the left, increasing the cost as well as decreasing the consumer production.

    According to several items aggregate demand will increase as well as decrease. Such issues can in turn trigger changes throughout the AD spiral upwards or downwards.

    Somehow you can infer that such a scenario triggered the recession or crisis.
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