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:

Personality Traits

Enduring characteristics and behaviors that distinguish one individual from another.

Predict

To make a reasonable inference about future events or outcomes based on current or past information.

Behavioral Trends

Patterns or tendencies in behavior that are observable across a group of individuals or over time.

Inconsistent

Displaying a lack of regularity or predictability in actions, thoughts, or outcomes, leading to variability in behavior or results.