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Which of the following describes the effect of the 2007 recession?

A

A sharp decrease in aggregate supply, sharp increase in the price level, and higher unemployment.

B

A sharp decrease in aggregate supply with no effect on the price level, but a reduction in real GDP.

C

A sharp decrease in aggregate demand, decrease in real GDP, and increase in the unemployment rate.

D

A decrease in aggregate supply and an increase in aggregate demand with little change in real GDP.

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