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

Question

Quizplus · Accepted Answer

A decrease in aggregate demand leads to a decrease in real GDP and an increase in unemployment. Therefore, the correct answer is A, as the unemployment rate increased and real GDP decreased during the Great Depression.

During the Great Depression,aggregate Demand in the U