As a result of a sharp decrease in aggregate demand between 1929 and 1933, real GDP was _____ its 1929 level.
A) 29% below
B) 100% below
C) 29% above
D) 50% above

Question

Quizplus · Accepted Answer

A sharp decrease in aggregate demand between 1929 and 1933 led to a severe economic contraction, which is better known as the Great Depression. The decline in aggregate demand caused a significant decrease in economic activity, leading to a decline in real GDP, which was 29% below its 1929 level. Therefore, option A is the correct answer.

As a Result of a Sharp Decrease in Aggregate Demand