During the Great Depression, the aggregate price level and real gross domestic product (GDP) both decreased, as depicted in the graph. Unemployment increased to record levels. Which of following best explains why this happened? A sharp recession followed the United States abandoning the gold standard. A significant decline in military spending following the end of a war led to a recession. A sudden increase in oil prices caused inflation and a deep recession. A rapid decline in housing prices led to problems in the loanable funds market and a recession.

During the Great Depression, the aggregate price level and real gross domestic product (GDP) both decreased, as depicted in the graph. Unemployment increased to record levels. Which of following best explains why this happened? A sharp recession followed the United States abandoning the gold standard. A significant decline in military spending following the end of a war led to a recession. A sudden increase in oil prices caused inflation and a deep recession. A rapid decline in housing prices led to problems in the loanable funds market and a recession.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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