The decline in aggregate demand that occurred during the Great Depression caused a drop in real GDP:
A) and deflation.
B) but an increase in the price level.
C) but no change in the price level.
D) but a modest rise in inflation.

Question

Quizplus · Accepted Answer

During the Great Depression, the decline in aggregate demand led to a decrease in real GDP and deflation, as prices fell due to reduced consumer spending and investment.

The Decline in Aggregate Demand That Occurred During the Great