Use the Following Graph to Answer the Following Questions

question 47

Multiple Choice

Use the following graph to answer the following questions.This graph depicts an economy where aggregate demand has decreased,with no change in either short-run aggregate supply (SRAS) or long-run aggregate supply (LRAS) .

-During the Great Depression,the aggregate price level and real gross domestic product (GDP) both decreased,as depicted in the graph.Unemployment increased to record levels.Which of the following best explains why this happened?

• A) A sudden increase in oil prices caused inflation and a deep recession.
• B) A stock market crash,large numbers of bank failures,an increase in tax rates,and a tight money supply caused a recession.
• C) A rapid decline in housing prices led to problems in the loanable funds market and a recession.
• D) A significant decline in military spending following the end of a war led to a recession.
• E) A sharp recession followed the United States abandoning the gold standard.

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Definitions:

Salts

Compounds formed from the ionic bonds between cations and anions, commonly resulting from the neutralization reaction of an acid and a base.

Signal Transduction

The process by which a chemical or physical signal is transmitted through a cell as a series of molecular events, most often protein phosphorylation.

Signal Transmission

The process of transmitting information in the form of signals from one part of an organism to another, essential for coordination and function in biological systems.

Reception

Process of detecting a stimulus.