The Most Accurate Capsule Summary of the Great Depression in Terms

question 150

Multiple Choice

The most accurate capsule summary of the Great Depression in terms of the AD/SAS/LAS model is that

• A)we slid down an AD curve from 1929 to 1933,then down 1933's SAS curve for the rest of the decade.
• B)we slid down an AD curve from 1929 to 1933,then back up the same curve for the rest of the decade.
• C)we went up an AD curve from 1929 to 1933,then came back down it for the rest of the decade.
• D)AD and SAS shifts in unison took us straight to the left from 1929 to 1933,then back straight to the right for the rest of the decade.

---

Definitions:

Weighted-Average Method

An inventory costing method that averages the cost of goods available for sale and assigns that average cost to the units sold.

FIFO Method

A method in accounting for managing inventories and financial matters where the first items placed in inventory are the first ones to be used or sold.

Equivalent Units

A concept used in cost accounting to express the amount of work done by an incomplete production process on units of output, converted into an equivalent number of fully completed units.

FIFO Method

"First In, First Out," an inventory valuation method where goods first added to inventory are the first ones to be sold.