The most accurate capsule summary of the Great Depression in terms of the AD/SAS/LAS model is that
A)we slid down an AD curve from 1929 to 1933,then down 1933's SAS curve for the rest of the decade.
B)we slid down an AD curve from 1929 to 1933,then back up the same curve for the rest of the decade.
C)we went up an AD curve from 1929 to 1933,then came back down it for the rest of the decade.
D)AD and SAS shifts in unison took us straight to the left from 1929 to 1933,then back straight to the right for the rest of the decade.

Question

Quizplus · Accepted Answer

The Great Depression saw a decline in aggregate demand (AD) from 1929 to 1933, leading to a decrease in output and employment. After 1933, policies and recovery efforts helped increase AD, moving the economy back up the curve.

The Most Accurate Capsule Summary of the Great Depression in Terms