Question

you read a news article reporting that a nations real output fell while its inflation rate temporarily jumped up. From this you can conclude that the recession was likely caused by which of these scenarios?

Answer 1

The correct answer to the following question is "decrease in aggregate supply".

Step-by-step explanation:

A decrease throughout the aggregate supply would change the demand for labor to either the left, increasing the cost as well as decreasing the consumer production.

• According to several items aggregate demand will increase as well as decrease.
• Such issues can in turn trigger changes throughout the AD spiral upwards or downwards.

Somehow you can infer that such a scenario triggered the recession or crisis.