Most of the countries in the world suffered long and deep losses of output and employment between 1930 and 1935,which in turn meant fewer purchases of U.S.goods and services.Which of the following indicates the appropriate change in the U.S.economy?
A) Aggregate demand shifted to the left
B) Aggregate demand shifted to the right
C) The economy moved up along the aggregate demand curve
D) The economy moved down along the aggregate demand curve

Question

Quizplus · Accepted Answer

The decrease in purchases of U.S. goods and services from other countries implies a decrease in aggregate demand. Therefore, the appropriate change in the U.S. economy is a leftward shift of the aggregate demand curve.

Most of the Countries in the World Suffered Long and Deep