Suppose That During the Great Depression Long-Run Aggregate Supply Shifted

question 12

Multiple Choice

Suppose that during the Great Depression long-run aggregate supply shifted left.To be consistent with what happened to the price level and output,what would have had to happen to aggregate demand?

• A)It would have to have shifted left by less than aggregate supply.
• B)It would have to have shifted left by more than aggregate supply.
• C)It would have to have shifted right by less than aggregate supply.
• D)It would have to have shifted right by more than aggregate supply.

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Definitions:

Choroid Layer

A layer of the eye between the retina and the sclera that contains blood vessels and provides oxygen and nutrients to the eye.

Pigment Cell Layer

A layer of cells that contain pigment, such as the melanin-containing cells found in the skin or the iris of the eye, which provide coloration and protection from UV light.

Tympanic Membrane

Also known as the eardrum, a thin membrane that vibrates in response to sound waves, transmitting sounds to the middle and inner ear.

Altitude

The height or elevation of a place above sea level, often affecting climate, oxygen availability, and physical exertion requirements.