Response post Because of the Great Recession, consumer confidence declined due to job loss, declining housing prices, and other negative economic impacts. This caused a decline in consumer spending, causing the aggregate demand to decrease. Higher unemployment rates and underutilized resources caused the aggregate supply curve to shift upward. Due to the shifts in AD/AS caused by the Great Recession, GDP levels decreased. When AD decreases or shifts left, firms are more likely to slow production down due to decreased consumer confidence/spending. This will lead to lower GDP output