In the late 1920s,the U.S.economy experienced a decrease in investment,which perhaps triggered the Great Depression.The decrease in investment
A)increased aggregate supply.
B)decreased aggregate supply.
C)increased aggregate demand.
D)decreased aggregate demand.
E)increased potential GDP.

Question

Quizplus · Accepted Answer

Decrease in investment would lead to a decrease in aggregate demand, as there is less spending in the economy resulting in a reduction of economic activity.

In the Late 1920s,the U