During the Great Depression,aggregate demand in the U.S.economy decreased.As a result,the price level ________ and real gross domestic product (GDP)________.
A) decreased; decreased
B) increased; increased
C) remained unchanged; increased
D) decreased; remained unchanged
E) increased; decreased

Question

Quizplus · Accepted Answer

During the Great Depression, the decrease in aggregate demand led to a decrease in both the price level and real GDP. This is because with less demand for goods and services, businesses had to lower their prices and subsequently produce less, resulting in a decrease in GDP.

During the Great Depression,aggregate Demand in the U