Asked by Maria Clara on May 19, 2024
Verified
Which of the following happened during the Great Depression?
A) Unemployment and prices increased while output decreased.
B) Unemployment increased while output and prices decreased.
C) Unemployment and prices decreased while output increased.
D) Unemployment and output decreased while prices increased.
E) Unemployment and output increased while prices decreased.
Great Depression
A severe worldwide economic downturn that took place during the 1930s, characterized by widespread unemployment, deflation, and a significant decline in economic activity across the globe.
Unemployment
The situation where individuals who are capable of working and are actively seeking work are unable to find employment.
Output
The total amount of goods and services produced by an economy over a certain period of time.
- Understand the principles of aggregate demand and supply and their impact on the general economic performance.
- Identify the reasons for economic fluctuations and the role of government interventions in addressing these fluctuations.
Verified Answer
KO
Kyje' O'LoughlinMay 20, 2024
Final Answer :
B
Explanation :
During the Great Depression, there was a significant increase in unemployment while output and prices decreased. This was due to the decrease in consumer spending, which led to a decrease in demand for goods and services, resulting in businesses cutting back on production and laying off workers. This led to a cycle of further reductions in spending and employment, ultimately resulting in a deep and prolonged economic downturn.
Learning Objectives
- Understand the principles of aggregate demand and supply and their impact on the general economic performance.
- Identify the reasons for economic fluctuations and the role of government interventions in addressing these fluctuations.