Which of the following economic changes was observed during the Great Depression?
A) a fall in the domestic price level, leading to an increase in the demand for imports
B) a fall in resource prices, leading to an increase in aggregate supply
C) an increase in unemployment, leading to a decrease in aggregate demand
D) an increase in the domestic price level, leading to an increase in the demand for exports
E) an increase in real GDP, leading to an increase in the real interest rate

Question

Quizplus · Accepted Answer

The Great Depression was marked by a significant increase in unemployment, which in turn led to a decrease in aggregate demand as people had less money to spend on goods and services.

Which of the Following Economic Changes Was Observed During the Great