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) During the Great Depression, aggregate demand declined sharply. As a result, the economy moved to A) point k creating a recessionary gap equal to (Y_m - Y_k). B) point k creating a recessionary gap equal to (Y_P - Y_k). C) point j creating a recessionary gap equal to (Y_P - Y_j). D) point j creating a recessionary gap equal to (Y_n- Y_j).

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During the Great Depression, the decline in aggregate demand led to a recessionary gap, where actual output (Y_k) was less than potential output (Y_P).

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