During the Great Depression,the U

question 43

Multiple Choice

During the Great Depression,the U.S.aggregate demand curve shifted to the left,in part,because

• A) housing prices increased dramatically.
• B) the U.S.government decreased taxes.
• C) there was a severe decline in stock prices.
• D) the U.S.government increased the supply of money.
• E) there was an increase in the U.S.population.

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Definitions:

Macroeconomics

The branch of economics dealing with the structure, performance, behavior, and decision-making of an economy as a whole, rather than individual markets.

Microeconomics

The branch of economics that studies the behavior of individuals and businesses in making decisions on the allocation of limited resources.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision.

Positive Statements

Assertions about the world that are objective and can be tested by referring to the available evidence.