financial asset prices tumbled in 2008, contributing to the great recession as the AD curve shifted greatly to the left. THe ordinary AS/AD model predictys that a falling short run aggregate supply would bring deflation and move the economy back to potential output? expectations that financial asset prices would fall further could shift the AD curve further to the left expectations that financial asset prices would rise back again would cause the AD curve to shift left falling financial asset prices would make people feel poorer which would cause the AD curve to shift to the right expectations that financial asset prices will fall further would cause the AD curve to shift to the right