On an aggregate demand and aggregate supply graph,the Great Depression can be pictured as
A)a leftward shift of the aggregate supply curve
B)a rightward shift of the aggregate supply curve
C)a leftward shift of the aggregate demand curve
D)an increase in the price level caused by a movement along the aggregate demand curve
E)a decrease in the price level caused by a movement along the aggregate supply curve

Question

Quizplus · Accepted Answer

The Great Depression was a period of economic contraction and high unemployment, which led to a significant decrease in consumer spending and business investment. As a result, the aggregate demand curve shifted leftward, reflecting a decrease in overall spending in the economy. This led to a decrease in both the price level and real output.

On an Aggregate Demand and Aggregate Supply Graph,the Great Depression