All of the following took place during the Great Depression EXCEPT
A) increase in unemployment from about 3.4 percent to about 25 percent and a decrease in real GDP by about 30 percent between 1929 in 1933.
B) an increase in taxes because of the fear that budget deficits would undermine business confidence.
C) a fall in the money supply by more than 30 percent.
D) a rise in inflation during the early 1930s.
E) the stock market crashed by about one-third in October of 1929.
D
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Which of the following will cause a decrease in producer surplus?
a. the imposition of a nonbinding price ceiling in the market b. buyers expect the price of a good to be higher next month c. the price of a substitute increases d. income increases and buyers consider the good to be inferior
Suppose the population of a country falls, but its Real GDP remains constant. As a result, there is __________ economic growth
A) both absolute economic growth and per-capita real B) absolute economic growth, but not per-capita real C) per-capita real economic growth, but not absolute D) neither absolute economic growth nor per-capita real
Jamie's marginal utility from muffins and from doughnuts (in utils) is shown in the accompanying table. Jamie spends a total of $8 on muffins and/or doughnuts every morning. The price of each muffin is $2 and the price of each doughnut is $1.MuffinsPer DayMarginal UtilityPer MuffinDoughnutsPer DayMarginal UtilityPer Doughnut140220230415320510What is Jamie's optimal combination of muffins and doughnuts each day?
A. 1 muffin, 6 doughnuts B. 2 muffins, 4 doughnuts C. 4 muffins, zero doughnuts D. 3 muffins, 2 doughnuts
Critics of supply-side economics argue that tax cuts favored by supply-siders will have the greatest effect on
A. aggregate supply. B. tax receipts. C. aggregate demand. D. the money supply.