Use the Following Graph to Answer the Following Questions

question 92

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 fell by 20 percent as depicted in the graph,suggesting that

• A) both aggregate demand and long-run aggregate supply decreased during the Great Depression.
• B) the primary cause of the Great Depression was a decrease in aggregate demand.
• C) aggregate demand decreased and long-run aggregate supply increased during the Great Depression.
• D) aggregate demand decreased and short-run aggregate supply increased during the Great Depression.
• E) long-run aggregate supply increased,whereas short-run aggregate supply decreased during the Great Depression.

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Definitions:

Section 11

A provision of the Securities Act of 1933 that holds issuers liable for material misstatements or omissions in their public offering documents.

Securities Act of 1933

A U.S. law enacted to protect investors by requiring transparency in financial statements so investors can make informed decisions about investments.

Registration Statement

A legal document filed with the Securities and Exchange Commission by companies wishing to issue new securities to the public, containing financial and other significant details.

Accounts Receivable

Money owed to a business by its customers for goods or services that have been delivered or used but not yet paid for.