Answer to Question #45240 in Macroeconomics for Dunia

Question

Which of the following statements helps to explain why the economy can be slow to recover from a recession?

Workers are less motivated because of reduced expectations, which reduces total output.
There is not as much money in circulation to fuel new investment.
Wages do not fall quickly, which delays an adjustment to a higher output level.
Aggregate supply shifts inward proportionately, which leads to a “vicious cycle.”