Between 1929 and the Depth of the Great Depression in 1933,the

question 156

Multiple Choice

Between 1929 and the depth of the Great Depression in 1933,the United States encountered the following:

• A)the aggregate supply curve shifted inward with no change in the aggregate demand curve
• B)the aggregate demand curve shifted inward with no change in the aggregate supply curve
• C)the aggregate demand curve shifted outward with no change in the aggregate supply curve
• D)the aggregate supply curve shifted outward with no change in the aggregate demand curve
• E)the aggregate supply and demand curves both shifted outward

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Definitions:

Comparative Advantage

The ability of a country to produce a good or service at a lower opportunity cost than its trading partners.

Fewer Resources

The state of having limited amounts of inputs required to produce goods and services, such as capital, labor, and materials.

Exchange Rates

The worth of a currency when converted into another, establishing the quantity of one currency that can be swapped for another.

Gains from Trade

The net benefits that parties obtain by voluntarily exchanging goods or services in markets.