part-d: Now suppose history had taken an alternative turn following the Great Depression. Suppose President Roosevelt's government had not launched the "New Deal" to help the economy or WW2 had not happened. How would the American economy return back to its initial equilibrium? Explain in words and using an aggregate demand and supply plot.
part-a: Using aggregate demand and
part b. New Deal is an example of expansionary fiscal policy adopted to counteract against a negative aggregate demand shock. Illustrate the impact of the New Deal programs on the American economy using your aggregate demand and supply plot from part a.
part c. Illustrate the impact of WW2 on the US economy using your aggregate supply and demand plot from part a.
part-d: Now suppose history had taken an alternative turn following the Great Depression. Suppose President Roosevelt's government had not launched the "New Deal" to help the economy or WW2 had not happened. How would the American economy return back to its initial equilibrium? Explain in words and using an aggregate demand and supply plot.
Answer only D.
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