In the early 1930s in the united states there was a a

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55.In the early 1930s in the United States, there was a a. large increase in output. In the early 1940s there was also a large increase in output. b. large increase in output. In the early 1940s there was a large decrease in output. c. large decrease in output. In the early 1940s there was a large increase in output. d. large decrease in output. In the early 1940s there was also a large decrease in output. ANS: C DIF: 1 REF: 20-5 NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Great Depression | World War II MSC: Definitional 56.Which of the following has been suggested as a cause of the Great Depression? a. a decline in the money supply b. a decrease in stock prices c. the collapse of the banking system d. All of the above are correct. ANS: D DIF: 1 REF: 20-5 NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Great Depression MSC: Definitional
57.Which of the following did not happen during the onset of the Great Depression? a. The money supply fell as households took money out of bank deposits. b. The Fed conducted expansionary monetary policy. c. Stock prices fell about 90 percent. d. Disruption of the banking system made it difficult for some firms to obtain funds for investment. ANS: B DIF: 1 REF: 20-5 NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Great Depression MSC: Definitional 58.In the first few years of the Great Depression, unemployment rose to about a. 10 percent, and prices rose about 14 percent. b. 15 percent, and prices rose about 22 percent. c. 20 percent, and prices fell about 14 percent. d. 25 percent, and prices fell about 22 percent. ANS: D DIF: 1 REF: 20-5 NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Great Depression MSC: Definitional 59.Which of the following by itself is consistent with the directions that the price level and real GDP changed at the onset of the Great Depression? a. aggregate demand shifted right b. aggregate demand shifted left c. aggregate supply shifted right d. aggregate supply shifted left ANS: B DIF: 2 REF: 20-5 NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Great Depression MSC: Applicative 60.Suppose that during the Great Depression long-run aggregate supply shifted left. To be consistent with what happened to the price level and output, what would have had to happen to aggregate demand? a. It would have to have shifted left by less than aggregate supply. b. It would have to have shifted left by more than aggregate supply. c. It would have to have shifted right by less than aggregate supply. d. It would have to have shifted right by more than aggregate supply. ANS: B DIF: 3 REF: 20-5 NAT: Analytic LOC: Aggregate demand and aggregate supply TOP: Great Depression MSC: Applicative

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