10 . Great Depression

In 1939, with the U.S. economy not yet fully recovered from the Great Depression, President Roosevelt proclaimed that Thanksgiving would fall a week earlier than usual so that the shopping period before Christmas would be longer.

Graph APrice LevelQuantity of OutputLRASAggregate DemandAggregate Supply

Graph BPrice LevelQuantity of OutputLRASAggregate DemandAggregate Supply

Which of the graphs represents the state of the economy before this pronouncement?

Graph A

Graph B

True or False: President Roosevelt was trying to increase aggregate supply.

True

False