Asked by Camryn Bergeron on May 22, 2024
Verified
Which of these changes was observed in the U.S.between 1929 and 1933?
A) The aggregate supply curve shifted inward with no change in the aggregate demand curve.
B) The aggregate demand curve shifted inward with no change in the aggregate supply curve.
C) The aggregate demand curve shifted outward with no change in the aggregate supply curve.
D) The aggregate supply curve shifted outward with no change in the aggregate demand curve.
E) The aggregate supply and demand curves both shifted outward.
Aggregate Supply Curve
An illustrative chart that demonstrates the aggregate supply of goods and services that producers within an economy are prepared to provide at varying prices.
Aggregate Demand Curve
The Aggregate Demand Curve represents the total amount of goods and services demanded across all levels of an economy at various price levels.
- Gain insight into the historical setting and advancement of macroeconomic policies, especially during key economic lows akin to the Great Depression.
Verified Answer
MJ
Mary Jean BunalMay 25, 2024
Final Answer :
B
Explanation :
The Great Depression began in 1929 and lasted until 1939. During this time, there was a significant decrease in aggregate demand due to factors such as a decrease in consumer spending and investment. This resulted in a shift inward of the aggregate demand curve. The aggregate supply curve also shifted inward due to factors such as decreased production and increased unemployment. However, the inward shift of the aggregate demand curve was the more significant change during this time period.
Learning Objectives
- Gain insight into the historical setting and advancement of macroeconomic policies, especially during key economic lows akin to the Great Depression.
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