Which of the following most accurately describes the behavior of the U.S. economy during the 2001 recession?
A) Aggregate demand fell as business investment declined while aggregate supply rose as a result of continued productivity growth.
B) Aggregate demand fell primarily as a result of reduced consumption while aggregate supply increased due to continued growth in productivity.
C) Aggregate demand fell due to a reduction in business investment while aggregate supply declined due to a reduction in productivity.
D) Aggregate demand fell due to the bursting of the housing bubble while aggregate supply fell due to slower productivity growth.
A
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