Use the following to answer questions .
Exhibit: Aggregate Demand and Aggregate Supply and the Great Depression
-(Exhibit: Aggregate Demand and Aggregate Supply and the Great Depression) Which point best illustrates where the U.S. economy was just prior to the Great Depression?
A) point j
B) point k
C) point m
D) point n

Question

Use the following to answer questions .
Exhibit: Aggregate Demand and Aggregate Supply and the Great Depression 
-(Exhibit: Aggregate Demand and Aggregate Supply and the Great Depression) Which point best illustrates where the U.S. economy was just prior to the Great Depression?
A) point j 
B) point k 
C) point m 
D) point n

Quizplus · Accepted Answer

Point C (or point m) best illustrates where the U.S. economy was just prior to the Great Depression as it represents a situation where aggregate demand exceeded aggregate supply, leading to inflationary pressures. This was the situation in the late 1920s, when the stock market was booming and consumer spending was high. However, this unsustainable growth eventually led to a collapse in demand and a severe recession, which is represented by points J, K, and N.

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