The Great Depression, in Which Real GDP Fell and Unemployment

question 160

Multiple Choice

The Great Depression, in which real GDP fell and unemployment rose, can be characterized as a

• A) inflationary gap.
• B) long-run equilibrium.
• C) recessionary gap.
• D) full-employment equilibrium.

---

Definitions:

Disposable Income

Indicates the sum of funds households can allocate towards expenditure and savings once income taxes have been deducted.

Disposable Income

Households' available economic resources for spending and saving post-tax.

Disposable Income

The amount of money an individual or household has to spend or save after taxes have been deducted.

Savings

Money that is set aside from disposable income, often placed in interest-bearing accounts for future use or investment.