Question

When the U.S. aggregate demand curve shifted to the left during the Great Depression

a. Real gross domestic product (GDP) increased.
b. Tax rate decreased.
c. The money supply increased.
d. Real GDP decreased.
e. The price level increased.

Answer 1

Answer:

The correct answer is option d.

Explanation:

The aggregate demand comprises of consumption spending, government spending, investment spending and net exports. The AD curve is downward sloping curve.

A leftward shift in the aggregate demand curve means a decrease in the aggregate demand. A decrease in the  aggrgate demand menas a decline in the GDP.