Use the following graph to answer the following questions.This graph depicts an economy where aggregate demand has decreased,with no change in either short-run aggregate supply (SRAS)or long-run aggregate supply (LRAS).

-The graph accurately summarizes what happened during the Great Depression,because during that time,the price level ________ and real gross domestic product (GDP)________.
A) decreased; decreased
B) increased; decreased
C) remained unchanged; remained unchanged
D) decreased; increased
E) remained unchanged; decreased

Question

Use the following graph to answer the following questions.This graph depicts an economy where aggregate demand has decreased,with no change in either short-run aggregate supply (SRAS)or long-run aggregate supply (LRAS).
 
-The graph accurately summarizes what happened during the Great Depression,because during that time,the price level ________ and real gross domestic product (GDP)________.
A) decreased; decreased 
B) increased; decreased 
C) remained unchanged; remained unchanged 
D) decreased; increased 
E) remained unchanged; decreased

Quizplus · Accepted Answer

The graph shows a decrease in aggregate demand, which leads to a decrease in both price level and real GDP. This accurately summarizes what happened during the Great Depression, where there was a significant decrease in aggregate demand which led to a decrease in both price level and real GDP. Therefore, choice A is the best answer.

Use the Following Graph to Answer the Following Questions