Question

As the economy slide into the Great Depression, many banks failed and the nation’s money supply decreased. Present an analysis (using an AS-AD diagram, and labor market diagram) that explains why a decrease in the money supply caused by bank failures can take an economy that is at full employment and move it into a serious recession. In particular,

Explain how a significant decrease in the nation’s money supply might be expected to impact the employment level, unemployment rate, price level, output level, and real wage level.​

Answer 1

Only thing thy are sliding into is great depression.