The Economic Slump in the 1970s Looked Different from the Slump

question 173

Multiple Choice

The economic slump in the 1970s looked different from the slump at the beginning of the Great Depression because it was:

• A) the result of a lack of confidence that led businesses and consumers to spend less.
• B) largely caused by events in the Middle East that led to sudden cuts in world oil production and soaring prices for oil.
• C) the direct result of a contractionary monetary policy.
• D) the result solely of a negative demand shock.

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Definitions:

Capuchins

A genus of New World monkeys known for their intelligence and social behaviors, often studied in research on primatology and psychology.

Equity Norm

A principle within social psychology that posits fairness and equality in the distribution of resources and responsibilities among members of a group.

Equality Norm

A principle or standard within social groups that advocates for equal rights, opportunities, and treatment for all members, often guiding behavior and decision-making in group settings.

Wages

Payments made to employees for their labor or services, typically calculated on an hourly, daily, or piecework basis.