Concept:A fall in aggregate spending reduces the total demand for goods and services in the economy.
Explanation:When consumers, firms, or government spend less, businesses see lower sales.
This leads to reduced production and lower income levels in the economy.
As output falls, workers may lose jobs, and economic activity slows down.
If the decline in aggregate spending is sustained, the economy contracts.
This phase of negative economic growth is known as a recession.
Although prices may also fall, the primary and ultimate consequence here is the decline in real output.
Answer:D. recession