During the Great Depression, the United States underwent a movement _____ along the short-run aggregate supply curve; during the 1979 oil crisis, the United States underwent a _____ shift in the short-run aggregate supply curve.

Question

Quizplus · Accepted Answer

During the Great Depression, there was a movement down due to decreased aggregate demand and massive unemployment, which led to a decrease in production and prices. During the 1979 oil crisis, there was a leftward shift due to decreased aggregate supply caused by an increase in production costs, specifically the rise in oil prices.

During the Great Depression, the United States Underwent a Movement