Question:

How can there be an increase in aggregate demand and yet the economy is in a recession?

by  |  earlier

0 LIKES UnLike

this is hypothetical

 Tags:

   Report
Answer The Question I've Same Question Too

3 ANSWERS

Sort By: Date  |  Rating

  1. If aggregate supply decreases by more than the increase in aggregate demand, output will be smaller than before.


  2. There can't be. Recession = decrease in GDP

  3. A Recession is (2) Two Consecutive Quarters of "NEGATIVE" GDP Growth. Until that event occurs, we are not in a Recession. Thus explains the reason why demand continues to grow.
You're reading: How can there be an increase in aggregate demand and yet the economy is in a recession?

Question Stats

Latest activity: earlier.
This question has 3 answers.

BECOME A GUIDE

Share your knowledge and help people by answering questions.
Register Now
Unanswered Questions