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.

Question

Quizplus · Accepted Answer

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.

Which of These Changes Was Observed in the U