During the Great Depression,Canada underwent a movement _____ along the short-run aggregate supply curve;during the 1979 oil crisis,Canada underwent a _____ shift in the short-run aggregate supply curve.
A) down;leftward
B) up;leftward
C) up;rightward
D) down;rightward

Question

Quizplus · Accepted Answer

During the Great Depression, there was a decrease in demand for goods and services, leading to a decrease in production and a movement down along the short-run aggregate supply curve. On the other hand, during the 1979 oil crisis, there was a decrease in the availability of oil, which caused an increase in production costs and a leftward shift in the short-run aggregate supply curve. Therefore, the correct choice is A, as it describes a movement down along the short-run aggregate supply curve during the Great Depression and a leftward shift in the curve during the 1979 oil crisis.

During the Great Depression,Canada Underwent a Movement _____ Along the Short-Run