Question

sample stock index (2008–2013)
which conclusions can be made about the growth of the economy? check all that apply.
aggregate demand increased after 2009.
aggregate demand increased between 2010 and 2011.
the economy remained stable in 2008.
the economy experienced a sharp drop in growth between 2008 and 2009.
the economy grew weaker after a crash in 2010.

Explanation:

• Aggregate demand is often correlated with stock - index levels. The stock index rises after 2009, suggesting an increase in aggregate demand.
• Between 2010 and 2011, the index continues to rise, indicating an increase in aggregate demand.
• The sharp decline in the index from 2008 to 2009 shows a sharp drop in economic growth.
• In 2008, the index starts high and then drops sharply, so the economy was not stable.
• There is no crash in 2010; the index continues to rise.

Answer:

• Aggregate demand increased after 2009.
• Aggregate demand increased between 2010 and 2011.
• The economy experienced a sharp drop in growth between 2008 and 2009.