Asked by Mariah Rodriguez on Jun 13, 2024
Verified
Which of these economic changes was observed during the Great Depression?
A) A fall in the domestic price level leading to an increase in import demand
B) A fall in resource prices leading to an increase in aggregate supply
C) An increase in unemployment leading to a decrease in the aggregate demand
D) An increase in the domestic price level leading to an increase in export demand
E) An increase in real GDP leading to an increase in the real interest rate
Great Depression
A severe worldwide economic depression in the 1930s, marked by high unemployment, deflation, and significant declines in economic activity.
Aggregate Demand
The total demand for all goods and services in an economy at various price levels, at a given point in time.
Aggregate Supply
The total amount of goods and services that producers are willing and able to supply at a given overall price level in an economy.
- Comprehend the historical backdrop of macroeconomic strategies and their development throughout periods, especially amid major economic declines such as the Great Depression.
Verified Answer
LW
Lindsey WhaleyJun 14, 2024
Final Answer :
C
Explanation :
The increase in unemployment during the Great Depression resulted in a decrease in aggregate demand as consumers had less money to spend, and businesses had fewer customers to sell their goods and services to.
Learning Objectives
- Comprehend the historical backdrop of macroeconomic strategies and their development throughout periods, especially amid major economic declines such as the Great Depression.