How Does an Economic Contraction That Is Caused by a Shift

question 71

Multiple Choice

How does an economic contraction that is caused by a shift in aggregate demand remedy itself over time?  

• A) The expected price level rises, shifting aggregate demand to the right. 
• B) The expected price level rises, shifting aggregate demand to the left. 
• C) The expected price level falls, shifting aggregate supply to the right. 
• D) The expected price level falls, shifting aggregate supply to the left.