The 2007–2009 Recession This figure illustrates the 2007–2009 downturn by using real GDP and the GDP deflator data for 2005 through 2009 and superimposing hypothetical aggregate demand and short-run aggregate supply curves on the data. Because of the financial crisis, consumer spending declined, reducing aggregate demand in 2008 and 2009. Layoffs ensued and short-run aggregate supply declined as well. During this period, real output declined by over 4%.