During the Great Depression Real GDP fell dramatically. What was the result?
A) a shift in aggregate demand to the right
B) a shift in aggregate supply to the right
C) a movement along the aggregate demand curve
D) a shift in aggregate demand to the left
E) a shift in aggregate supply to the left

Question

Quizplus · Accepted Answer

During the Great Depression, Real GDP fell dramatically, which leads to a decrease in the overall demand for goods and services in the economy. Therefore, there was a shift in aggregate demand to the left, which further contributed to the economic downturn.

During the Great Depression Real GDP Fell Dramatically