Between 1921 and 1927,the stock market's value more than doubled,adding billions of dollars to the wealth of U.S.households and businesses.Which of the following indicates the appropriate change in the U.S.economy?
A) The economy moved up along the aggregate demand curve
B) The economy moved down along the aggregate demand curve
C) Aggregate demand shifted to the left
D) Aggregate demand shifted to the right

Question

Quizplus · Accepted Answer

The significant increase in the stock market's value suggests that there was an increase in overall demand for goods and services in the U.S. economy. This would be represented by a rightward shift in the aggregate demand curve. Therefore, choice D is the best answer.

Between 1921 and 1927,the Stock Market's Value More Than Doubled,adding