Multiple Choice
Use the following graph to answer the following questions.This graph depicts an economy where aggregate demand has decreased,with no change in either short-run aggregate supply (SRAS) or long-run aggregate supply (LRAS) .
-During the Great Depression,the aggregate price level fell by 20 percent as depicted in the graph,suggesting that
A) both aggregate demand and long-run aggregate supply decreased during the Great Depression.
B) the primary cause of the Great Depression was a decrease in aggregate demand.
C) aggregate demand decreased and long-run aggregate supply increased during the Great Depression.
D) aggregate demand decreased and short-run aggregate supply increased during the Great Depression.
E) long-run aggregate supply increased,whereas short-run aggregate supply decreased during the Great Depression.
Correct Answer:

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Correct Answer:
Verified
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