One Similarity Between the Great Recession and the Great Depression

question 104

Multiple Choice

One similarity between the Great Recession and the Great Depression is that in both episodes

• A) large numbers of banks failed.
• B) there were significant problems in financial markets.
• C) the U.S.government raised taxes.
• D) the U.S.government allowed the money supply to decrease.
• E) the unemployment rate exceeded 20 percent.

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Definitions:

Good Y

A term used in economics to represent a generic second good, often used in theoretical models comparing two different goods.

Budget Constraint

The restrictions on the sets of goods and services a consumer can purchase, determined by their income and the cost of these items.

Nachos

A Mexican dish consisting of heated tortilla chips covered with melted cheese and often also served with a variety of toppings.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance that is the main constituent of Earth's streams, lakes, and oceans, and the fluids of most living organisms.