As a result of a sharp decrease in aggregate demand between 1929 and 1933,real GDP was _____ its 1929 level.
A) 30% below
B) 100% below
C) 30% above
D) 50% above

Question

Quizplus · Accepted Answer

The Great Depression lasted from 1929 to 1933, during which a sharp decrease in aggregate demand occurred. This led to a collapse in output, employment and prices. Real GDP was 30% below its 1929 level, hence option A is the correct answer.

As a Result of a Sharp Decrease in Aggregate Demand