How can the dynamic AD-AS model be used to understand the economic shifts during the 2007-2009 recession?

• A. By assuming constant aggregate demand and supply.
• B. By focusing solely on the changes in long-run aggregate supply.
• C. By ignoring external factors such as oil prices.
• D. By analyzing the shifts in aggregate demand and short-run aggregate supply due to the housing bubble burst and financial crisis.

Answer: (D)