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:

Fair Value

The price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.

Fair Value Method

An accounting approach that assesses and assigns a price to a company's assets and liabilities based on current market value.

Effective Interest Method

A method of calculating the amortized cost of a bond or loan on the basis on an effective interest rate rather than the nominal rate.