When U.S.aggregate demand and long-run aggregate supply decreased during the Great Recession:

Question

Quizplus · Accepted Answer

When aggregate demand and long-run aggregate supply decreased during the Great Recession, unemployment increased and real GDP decreased. A decrease in demand leads to a decrease in production, resulting in lower GDP. Therefore, option B is correct. Option A is incorrect because unemployment increased, not decreased. Option C is incorrect because real GDP decreased. Option D is incorrect because real GDP was affected. Option E is incorrect because a decrease in price level may or may not have occurred.

When USAggregate Demand and Long-Run Aggregate Supply Decreased During the Great