During the Great Depression,aggregate Demand in the U

question 54

Multiple Choice

During the Great Depression,aggregate demand in the U.S.economy decreased.As a result,the unemployment rate ________ and real gross domestic product (GDP) ________.

• A) increased; decreased
• B) decreased; remained unchanged
• C) increased; increased
• D) decreased; decreased
• E) remained unchanged; increased

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Definitions:

Depreciation

Depreciation refers to the reduction in the value of an asset over time due to wear and tear, obsolescence, or age.

Capital Equipment

Long-lasting goods that are utilized in the production of other goods or services, such as machinery, buildings, and vehicles.

Inventories

Stocks of goods and materials that businesses maintain to meet customer demand without delays.

Financial Assets

Assets that derive value because of a contractual claim, such as stocks, bonds, bank deposits, and notes receivable.