As a result of a sharp decrease in aggregate demand between 1929 and 1933,the unemployment rate changed from _____% in 1929 to _____% in 1933.
A) 0;3
B) 3;19
C) 40;5
D) 25;0

Question

Quizplus · Accepted Answer

The sharp decrease in aggregate demand caused the unemployment rate to increase significantly. The unemployment rate went from 3% in 1929 to 19% in 1933, which is a massive increase. Option A is incorrect because the unemployment rate was not 0% in 1929. Option C is also incorrect because the unemployment rate did not decrease from 40% to 5% in 1933. Option D is incorrect because the unemployment rate did not drop to 0% in 1933.

As a Result of a Sharp Decrease in Aggregate Demand