Which of the following most accurately describes the changes in GDP and unemployment between 1929 and 1933?
a. Real GDP changed little but the unemployment rate increased to about 50%.
b. Real GDP increased by about 10% and the unemployment rate decreased to about 3%.
c. Real GDP decreased by about 30% and the unemployment rate increased to about 25%.
d. Both Real GDP and the unemployment dropped significantly.
c. Real GDP decreased by about 30% and the unemployment rate increased to about 25%.
You might also like to view...
One important difference between monopoly and monopolistic competition is the
A) slope of the demand curve that the firms faces. B) point there are no barriers to entry in monopolistic competition. C) greater restriction of output in monopolistic competition. D) result that the marginal revenue and demand curves are the same for a monopoly.
What unusual measures did the Fed take in trying to reduce long-term interest rates during the Financial Crisis of 2007-2009?
A) buying mortgage-backed securities issued by Fannie Mae and Freddie Mac B) reducing the federal funds rate multiple times C) issuing its own securities D) eliminating the discount rate on loans to member banks
If the absolute price elasticity of demand for concert tickets is 0.75, an increase in ticket prices will
A) increase total revenue. B) decrease total revenue. C) not change the elasticity of demand. D) not change total revenue.
Which of the following is an economic explanation for the "beauty premium"?
a. Employers pay very attractive women less than average-looking women because they believe them to be less intelligent. b. Employers pay above-average-looking men more than above-average-looking women. c. Employers pay above-average-looking women more than average-looking women because customers prefer to deal with better-looking women. d. Employers pay above-average-looking men more because they signal to the market that they are willing to spend more money on personal grooming, a sign of wealth and stability.