Final answer:
In a market with sticky prices and wages, a decrease in aggregate demand results in unchanged prices and wages, leading to unemployment and excess supply of goods.
Step-by-step explanation:
When a market experiences sticky prices and wages, it means that these do not adjust immediately in response to changes in economic conditions. Following a decrease in aggregate demand in such a market, prices and wages remain unchanged in the immediate term. In both the labor and goods markets, demand curves shift to the left from Do to Dā, but wages and prices do not immediately decline. This creates an excess supply of labor, leading to unemployment, and an excess supply of goods, contributing to a recession.