The severe economic decline in the United States during 2007-2009 can be attributed to several factors. Due to changes in the federal funds rate, and depletion of the national reserves, the United States experienced a subprime loan crisis. As a result of trade imbalances, these factors caused an influx of cash in the world economy (Benita 2019). In the end, these factors led to increased real estate problems and a restricted control of non-depository banks, which contributed to poor economic plans. The aggregate demand is the total amount of services and products that people want at a given price, while other variables remain constant. Aggregate supply, on the other hand, is all of the products or services produced by producers at a particular price. As a result of the decline in marginal capital proficiency, a drastic shift in aggregate demands can lead to the Great Depression. Analyzing the movements of aggregate demand and aggregate supply curves can help you determine the unemployment factor. Parui, 2002). Changes to the aggregate supply have no effect on actual production levels. An increase in aggregate Demand indicates that production must be boosted or prices should be raised.