The economy of Canada experienced a recession in 2020. How can the AS-AD model account for this recession, considering the outbreak of the the novel corona-virus? All of the choices are correct. This outbreak has led to a drastic shift in the aggregate demand to the left, because many buyers expect a significant fall in their wealth after the markets crashed in the last few weeks. This outbreak has led to a drastic downward shift in the aggregate demand, because many buyers prefer to stay in their homes these days. This outbreak has led to a drastic downward shift in aggregate supply, since a major part of the labor force is now required to stay home.

The economy of Canada experienced a recession in 2020. How can the AS-AD model account for this recession, considering the outbreak of the the novel corona-virus? All of the choices are correct. This outbreak has led to a drastic shift in the aggregate demand to the left, because many buyers expect a significant fall in their wealth after the markets crashed in the last few weeks. This outbreak has led to a drastic downward shift in the aggregate demand, because many buyers prefer to stay in their homes these days. This outbreak has led to a drastic downward shift in aggregate supply, since a major part of the labor force is now required to stay home.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter2: Fundamental Economic Concepts

Section: Chapter Questions

Problem 5E

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