The largest single shock to aggregate demand in U.S.history occurred in the early 1930s.What was it?
A) the Dust Bowl
B) the steep fall in capital investment
C) unemployment rate rising to 20%
D) a one-third drop in the money supply

Question

Quizplus · Accepted Answer

The largest single shock to aggregate demand in U.S. history occurred in the early 1930s when there was a one-third drop in the money supply. This led to a severe deflationary spiral, causing a sharp decline in prices, output, and employment.

The Largest Single Shock to Aggregate Demand in U