What Do Most Economists Agree Was the Trigger of the Great

question 4

Multiple Choice

What do most economists agree was the trigger of the Great Depression?

• A) a fall in the domestic price level
• B) a stock market crash
• C) high unemployment and high inflation
• D) an increase in the domestic price level
• E) rising house prices

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Definitions:

Inflation Expectations

The expected pace of future price increases, impacting how individuals choose to save and spend money.

Output

The quantity of goods or services produced in a given time period by a firm, industry, or country.

Inflation Rate

The percentage rate of change in price levels over time, often calculated as the annual rate of increase in the Consumer Price Index (CPI).

Adverse Supply Shock

An unexpected event that suddenly decreases supply, potentially increasing prices and decreasing the quantity available for consumers.