Answer :
The aggregate demand curve moves to the left in response to a decrease in demand.
The GDP and price levels are decreased by this decline. This results in economic contractions, which lower demand below the GDP potential of the economy and bring about a recession. The level of the whole price then decreases together with real GDP.
Businesses reduced their workforces as a result of a decline in demand and pricing levels, which raised the unemployment rate.
If the aggregate demand curve crosses the SRAS curve at a short-run equilibrium level below potential GDP, a recessionary gap results. The economy enters a recession as a result of a loss in aggregate demand, which also causes a drop in corporate earnings, commodity prices, interest rates, and credit demand.
Learn more about gdp at
https://brainly.com/question/15682765?referrer=searchResults
#SPJ4