Which of the following could potentially cause a recession? O AD increases, and wages are sticky. AD increases, and wages are flexible. O AD falls, and wages are flexible. O AD decreases, and wages are sticky.
Which of the following could potentially cause a recession? O AD increases, and wages are sticky. AD increases, and wages are flexible. O AD falls, and wages are flexible. O AD decreases, and wages are sticky.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter24: The Aggregate Demand/aggregate Supply Model
Section: Chapter Questions
Problem 30RQ: Name some factors that could cause AD to shift, and say whether they would shift AD to the tight or...
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
Transcribed Image Text:Which of the following could potentially cause a recession?
O AD increases, and wages are sticky.
O AD increases, and wages are flexible.
O AD falls, and wages are flexible.
AD decreases, and wages are sticky.
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