Question 1

Discuss the changes in federal tax policies during the Great Depression.Explain their impacts on private spending.

Accepted Answer

During the Great Depression, federal tax

Question 2

Why was Keynes' view considered heretical to classical or free market economists? What exactly did he propose that classical economists opposed?

Accepted Answer

Keynes' view was considered heretical to

Question 3

As indicated by real GDP,real GDP per capita and nominal GDP figures,the Great Depression was unmoved by the social reconstruction efforts of President Franklin D.Roosevelt and his supporters.

Accepted Answer

A) True 
 B)False

Question 4

The Great Depression is still the subject of controversy,including the question(s)of

Accepted Answer

A)  what caused the initial downturn. 
B)  why the economy contracted for so long (1929 to 1932) and why it contracted so much?(real GNP fell about 30%). 
C)  whether government policy helped or hindered the recovery attempt. 
D)  all of the above. 
A)  what caused the initial downturn. 
B)  why the economy contracted for so long (1929 to 1932) and why it contracted so much?(real GNP fell about 30%). 
C)  whether government policy helped or hindered the recovery attempt. 
D)  all of the above.

Question 5

Regarding business conditions during the 1930s,which of the following events did not occur?

Accepted Answer

A)  The number of patents applied for declined. 
B)  The number of mergers between companies increased in an attempt to increase ?their consolidated strength. 
C)  Some interest rates, such as the prime rate, fell to less than 1%. 
D)  In the early years of the Depression, business investment spending on plants and ?equipment was not enough to increase or maintain the country's capital stock. 
A)  The number of patents applied for declined. 
B)  The number of mergers between companies increased in an attempt to increase ?their consolidated strength. 
C)  Some interest rates, such as the prime rate, fell to less than 1%. 
D)  In the early years of the Depression, business investment spending on plants and ?equipment was not enough to increase or maintain the country's capital stock.

Question 6

Identify the successes and failures of the Federal Reserve System during the Great Depression.Describe the different views on the net success of the Fed.

Accepted Answer

The Federal Reserve System experienced b

Question 7

Unemployment in 1939,after a decade of recession and depression,still exceeded 10 percent.

Accepted Answer

A) True 
 B)False

Question 8

Keynesian economics endorsed the idea of

Accepted Answer

A)  increased government spending as a counterforce against slumps or recessions. 
B)  reduced taxation as a counterforce against rising prices. 
C)  increased government spending as a counterforce against inflation. 
D)  decreased government spending as a counterforce against slumps or recessions. 
A)  increased government spending as a counterforce against slumps or recessions. 
B)  reduced taxation as a counterforce against rising prices. 
C)  increased government spending as a counterforce against inflation. 
D)  decreased government spending as a counterforce against slumps or recessions.

Question 9

There was a silver lining during the Great Depression.Compared to other periods in U.S.history,this period was one of the most technologically advanced.

Accepted Answer

A) True 
 B)False

Question 10

During the Great Depression,the U.S.was not firmly tied to the world economy.

Accepted Answer

A) True 
 B)False

Question 11

Hughes and Cain (2011)talk about falling levels of investment during the Great Depression.What does the "investment" that they are talking about refer to?

Accepted Answer

A)  Engineering ideas behind the industry of the era 
B)  Money loaned by banks to consumers 
C)  Land, labor, and equipment used in production 
D)  Tools, equipment, machines, and buildings used in production 
A)  Engineering ideas behind the industry of the era 
B)  Money loaned by banks to consumers 
C)  Land, labor, and equipment used in production 
D)  Tools, equipment, machines, and buildings used in production

Question 12

Efforts to balance the federal government's budget by raising taxes provided a buffer to the economic downturn of the Great Depression.

Accepted Answer

A) True 
 B)False

Question 13

Federal taxes increased in 1932,1935 and 1937,and Social Security taxes were imposed in 1937.Which group is credited for these tax increases during the Great Depression?

Accepted Answer

A)  Classical economists 
B)  Keynesian economists 
C)  Monetarists 
D)  Government officials and special interest groups 
A)  Classical economists 
B)  Keynesian economists 
C)  Monetarists 
D)  Government officials and special interest groups

Question 14

How serious was the Great Depression? Explain by making reference to the various data that measure economic performance.Contrast the "Monetarist" view of the cause of the Depression with the "Keynesian" view.

Accepted Answer

The Great Depression was a very serious

Question 15

The federal spending policies of the Great Depression were clearly expansionary and helped return the U.S.economy to the low levels of unemployment experienced during the 1920s.

Accepted Answer

A) True 
 B)False

Question 16

Explain how the Federal Reserve System and the overall banking system changed after the Great Depression.

Accepted Answer

The Federal Reserve System and the overa

Question 17

If private investment had held up as well as consumption did,the economic contraction from 1929 to 1933 would have been less severe than it was.

Accepted Answer

A) True 
 B)False

Question 18

Could the Federal Reserve have prevented the increased downturn from 1930 to 1932? What are the viewpoints of Friedman and Schwartz (1963),Temin (1989)and Bernanke (1995)on this?

Accepted Answer

The Federal Reserve's role in causing or

Question 19

Which group of economists argues that the stock market crash of 1929 significantly reduced wealth,causing consumption to fall and resulting in a significant downturn in residential construction and investments?

Accepted Answer

A)  Classical economists. 
B)  Keynesian economists. 
C)  Monetarists. 
D)  Austrians. 
A)  Classical economists. 
B)  Keynesian economists. 
C)  Monetarists. 
D)  Austrians.

Question 20

The nominal money supply fell faster in 1929-32 than did prices.

Accepted Answer

A) True 
 B)False

Exam 24: The Great Depression

Discuss the changes in federal tax policies during the Great Depression.Explain their impacts on private spending.

Why was Keynes' view considered heretical to classical or free market economists? What exactly did he propose that classical economists opposed?

As indicated by real GDP,real GDP per capita and nominal GDP figures,the Great Depression was unmoved by the social reconstruction efforts of President Franklin D.Roosevelt and his supporters.

The Great Depression is still the subject of controversy,including the question(s)of

Regarding business conditions during the 1930s,which of the following events did not occur?

Identify the successes and failures of the Federal Reserve System during the Great Depression.Describe the different views on the net success of the Fed.

Unemployment in 1939,after a decade of recession and depression,still exceeded 10 percent.

Keynesian economics endorsed the idea of

There was a silver lining during the Great Depression.Compared to other periods in U.S.history,this period was one of the most technologically advanced.

During the Great Depression,the U.S.was not firmly tied to the world economy.

Hughes and Cain (2011)talk about falling levels of investment during the Great Depression.What does the "investment" that they are talking about refer to?

Efforts to balance the federal government's budget by raising taxes provided a buffer to the economic downturn of the Great Depression.

Federal taxes increased in 1932,1935 and 1937,and Social Security taxes were imposed in 1937.Which group is credited for these tax increases during the Great Depression?

How serious was the Great Depression? Explain by making reference to the various data that measure economic performance.Contrast the "Monetarist" view of the cause of the Depression with the "Keynesian" view.

The federal spending policies of the Great Depression were clearly expansionary and helped return the U.S.economy to the low levels of unemployment experienced during the 1920s.

Explain how the Federal Reserve System and the overall banking system changed after the Great Depression.

If private investment had held up as well as consumption did,the economic contraction from 1929 to 1933 would have been less severe than it was.

Could the Federal Reserve have prevented the increased downturn from 1930 to 1932? What are the viewpoints of Friedman and Schwartz (1963),Temin (1989)and Bernanke (1995)on this?

Which group of economists argues that the stock market crash of 1929 significantly reduced wealth,causing consumption to fall and resulting in a significant downturn in residential construction and investments?

The nominal money supply fell faster in 1929-32 than did prices.

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Colonial Development

America on the Eve of Revolution

Gaining Independence

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Population and Labor Force

Law and the Rise of Classical American Capitalism

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Agricultural Expansion: The Conflict of Two Systems on the Land

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