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) fell,yet the price level was largely unchanged,as depicted in the graph.Because of this,we know that ________ during the recession.
A) both aggregate demand and long-run aggregate supply increased
B) aggregate demand and long-run aggregate supply both decreased
C) aggregate demand decreased and long-run aggregate supply increased
D) aggregate demand decreased and short-run aggregate supply increased
E) long-run aggregate supply increased and short-run aggregate supply decreased
Correct Answer:
Verified
Correct Answer:
Verified
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