Recall the Application about the factors involved in causing recessions, and the causes of recessions in the United States from 1893 to 1990 to answer the following question(s).According to this Application, the recession of 1929 was primarily due to:
A. a decrease in aggregate demand caused by the private sector.
B. a decrease in aggregate demand resulting from decreases in government spending.
C. a decrease in aggregate supply due to rising gold prices.
D. an increase in aggregate supply resulting from European bank collapses.
Answer: A
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A business incurs the following costs per unit: Labor $5/unit; Materials $3/unit and rent $5000/month. If the firm produces 1000 units a month, the total costs equals
a. $5,000 b. $8,000 c. $13,000 d. $3,000
A theory is:
a. based only on critical factors or variables. b. a simplified abstraction of the real world. c. a detailed description of reality. d. a and b.
With productive efficiency:
a. There is production of that particular mix of goods and services most wanted by society b. The available supplies of factors of production are variable in quantity and quality c. There is production of any particular mix of goods and services in the least costly way d. The state of technology, or methods used to produce output, constantly change
A monopolistically competitive industry combines elements of both competition and monopoly. The monopoly element results from:
A. the likelihood of collusion. B. high entry barriers. C. product differentiation. D. mutual interdependence in decision making.