2247EconomicsMedium
Supply-side theories claim that________?
Aan increase in aggregate supply causes output and employment to decline
Ba decline in aggregate supply is responsible for economic downturns
Cnone of the above
Dbusiness cycles are caused by insufficient supply
Correct answer
B. a decline in aggregate supply is responsible for economic downturns
Explanation
The correct answer is a decline in aggregate supply is responsible for economic downturns.