The first two years of the Great Depression were dominated by
A)leftward shifts of the IS curve.
B)rightward shifts of the IS curve.
C)leftward shifts of the LM curve.
D)rightward shifts of the LM curve.
E)upward shifts of the SAS curve.

Question

Quizplus · Accepted Answer

The Great Depression was characterized by a decrease in investment and consumption, leading to a leftward shift of the IS curve, which represents equilibrium in the goods market.

The First Two Years of the Great Depression Were Dominated