Which of the Following Is the Aggregate Demand Explanation of the Slow

question 36

Multiple Choice

Which of the following is the aggregate demand explanation of the slow U.S. recovery?

• A) There is insufficient credit to return the economy to the natural level of output.
• B) There is insufficient demand to return the economy to the natural level of output.
• C) The unemployment rate is too low to return the economy to the natural level of output.
• D) The interest rate is too low to return the economy to the natural level of output.
• E) Government spending is too low to return the economy to the natural level of output.

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