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According to the theory of patterns of specialization and sustainable trade (PSST), economic activity can decline in the face of unchanged aggregate demand. How

User TTar
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Answer: See explanation

Step-by-step explanation:

According to the theory of patterns of specialization and sustainable trade (PSST), the demand of buyers on the demand side regarding a particular good may not be in synchrony with what is prevalent on the supply side.

Therefore, in a situation like this, even though the aggregate demand is constant, there will be a reduction in sales. The theory further posits that trades occur as a result of preference in buying and that specialization is required in order for an economy to be able to sustain its trade patterns.

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