Aggregate demand and supply curves have been widely used to analyze the performance of the macroeconomy. Figure 5-3 shows four diagrams that represent different changes in the macroeconomy. Choose the diagram that best represents the situations described in the following questions.Figure 5-3
 

Which graph in Figure 5-3 best represents the aggregate demand-induced Great Depression of the 1930s?

When households' marginal propensity to consume (MPC) increases, the size of the spending multiplier:

a. also increases. b. decreases. c. remains unchanged. d. reacts unpredictably.

In the financial crisis of 2008, which of the following were not among the consequences of high leverage in the banking industry? a. Less investment was undertaken than would otherwise have been the case

b. Less consumption spending took place than would otherwise have been the case. c. Unemployment was lower than it would otherwise have been. d. Real GDP was lower than it otherwise would have been