18 of 27 The Great Depression of the 1930's and the Great Recession from 2007 to 2009 are two major economic downturns in U.S. history. Classify each characteristic according to the downturn that it describes. The Great Depression The Great Recession It is thought to have resulted from reductions in both aggregate demand and aggregate supply. The unemployment rate peaked at just over 25%. It is thought to have resulted from reductions primarily in aggregate demand. The biggest annual decline in real GDP was 3.4%. The biggest annual decline in real GDP was 26.5%m The unemployment rate peaked at just over 10%. Policy makers used innovative strategies to increase the money supply. Answer Bank
18 of 27 The Great Depression of the 1930's and the Great Recession from 2007 to 2009 are two major economic downturns in U.S. history. Classify each characteristic according to the downturn that it describes. The Great Depression The Great Recession It is thought to have resulted from reductions in both aggregate demand and aggregate supply. The unemployment rate peaked at just over 25%. It is thought to have resulted from reductions primarily in aggregate demand. The biggest annual decline in real GDP was 3.4%. The biggest annual decline in real GDP was 26.5%m The unemployment rate peaked at just over 10%. Policy makers used innovative strategies to increase the money supply. Answer Bank
Chapter8: Macroeconomic Equilibrium: Aggregate Demand And Supply
Section: Chapter Questions
Problem 12E
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