Recall the Application about the factors involved in causing recessions, and the causes of recessions in the United States from 1893 to 1990 to answer the following question(s).
-According to this Application, the recession of 1929 was primarily due to
A) a decrease in aggregate demand caused by the private sector.
B) a decrease in aggregate demand resulting from decreases in government spending.
C) a decrease in aggregate supply due to rising gold prices.
D) an increase in aggregate supply resulting from European bank collapses.

Question

Quizplus · Accepted Answer

The Application states that the recession of 1929 was primarily due to a decrease in aggregate demand caused by the private sector, specifically a drop in consumer spending and a decline in business investment. This is commonly known as the Great Depression.

Recall the Application About the Factors Involved in Causing Recessions