The following question are based on the following diagrams in which D₀ and S₀ refer to the initial aggregate demand and short-run aggregate supply curves:

-Economic conditions during World War II are best illustrated by diagram
A) A.
B) B.
C) C.
D) D.
E) E.

Question

The following question are based on the following diagrams in which D₀ and S₀ refer to the initial aggregate demand and short-run aggregate supply curves:
 
-Economic conditions during World War II are best illustrated by diagram
A) A. 
B) B. 
C) C. 
D) D. 
E) E.

Quizplus · Accepted Answer

During World War II, many economies experienced significant government intervention in the economy, with increased military spending leading to higher levels of employment and production. This is best represented by diagram C, which typically shows an increase in aggregate demand, leading to higher output and employment, a common economic condition in wartime economies.

The Following Question Are Based on the Following Diagrams in Which