Use the Following Graph to Answer the Following Questions

Multiple Choice

Use the following graph to answer the following questions.The graph depicts an economy where aggregate demand and long-run aggregate supply (LRAS) have decreased,with no change in short-run aggregate supply (SRAS) .

-During the Great Recession,real gross domestic product (GDP) decreased,yet the aggregate price level remained largely unchanged,as depicted in the graph.Unemployment increased to above-normal levels.Which of following best explains why this happened?

A) A significant decline in military spending following the end of a war led to a recession.
B) A sharp recession followed the United States abandoning the gold standard.
C) A decline in housing prices and stock prices,plus a financial crisis,caused a recession.
D) A sudden increase in oil prices caused inflation and a deep recession.
E) A stock market crash,large numbers of bank failures,an increase in tax rates,and a tight money supply caused a recession.