What Do Many Economists Blame for the Severity of the Great

question 58

Multiple Choice

What do many economists blame for the severity of the Great Depression?

• A)The collapse of the banking system.
• B)A rapid increase in the money supply.
• C)The issuing of an excessively large amount of currency by the Federal Reserve.
• D)The collapse of the electronic funds transfer system.

---

Definitions:

Aggregate Demand

The total market appetite for goods and services within an economy, delineated at a specific price level over an agreed time duration.

Average Price Level

An economic indicator that represents the overall level of prices in the economy by averaging the prices of all goods and services over a period.

Vertical Aggregate Supply Curve

A graphical representation where the aggregate supply does not change with the price level, indicating an economy at full employment.

Classical Economists

A group of 18th and 19th-century economists who believed in the theory that markets operate under the laws of supply and demand and that markets will self-regulate.