aggregate supply curve LRAS for the United States The economy is initially at long run equilibrium at point A The Great

Question

aggregate supply curve LRAS for the United States The economy is initially at long run equilibrium at point A The Great Depression was unusual because it was so deep and lasted so long In fact it was actually two separate recessions August 1929 to March 1933 and May 1937 to June 1938 The Great Depression was also characterized by another striking condition Prices across the economy declined throughout the course of the decade In fact at the end of the 1930s the general price level as measured by the GDP deflator was 20 lower than it had been in 1929 Due to the decline in the price level it is evident that the primary cause of the Great Depression was a decline in aggregate In the figure below shift the appropriate curve to reflect your answer choice which would create the outcome of declining prices during the Great Depression To refer to the graphing tutorial for this question type please click here B Price Level P LRASS SRASI AD2

Kunduz · Accepted Answer

Click to see the answer