Question

- than 15. When there occurs an economic recession, the supply curve shirts to the demand curve shifts to the , and the supply curves moves the demand curve. A. right, right, more. B. left, left, more. C. right, right, less. D. left, left, less.

Answer 1

During an economic recession which is the long period of negative economic growth rates due to downward sloping confidence in the larger economy depressing demand. As demand is depressed, the demand curve shifts to the right depressing prices. As confidence is low, the supply curve also shifts to the left trying to manage the depressing prices. To arrest the fall in prices, the supply curve moves more than the demand curve.

So Answer is B)