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.

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Definitions:

Feel-good, Do-good Phenomenon

The psychological theory that suggests individuals are more likely to engage in altruistic behaviors when they are in a good mood.

Adaptation-level Phenomenon

A psychological principle suggesting that individuals judge new experiences based on past experiences and the levels of stimulation they have become accustomed to.

Catharsis

The process of releasing, and thereby providing relief from, strong or repressed emotions, often through art, drama, or other forms of expression.

Aggressive Action

Behavior intended to harm or injure another person, either physically or psychologically.