Author Question: During the Great Depression, real GDP decreased, unemployment soared, and the inflation rate was ... (Read 102 times)

WhattoUnderstand

  • Hero Member
  • *****
  • Posts: 517
During the Great Depression, real GDP decreased, unemployment soared, and the inflation rate was negative. Which would have been the appropriate federal government policy combination to improve economic performance?
 
  A) increase government expenditure, decrease taxes, increase the quantity of money
  B) increase government expenditure, decrease taxes, decrease the quantity of money
  C) decrease government expenditure, increase taxes, decrease the quantity of money
  D) do not change government expenditures or taxes , increase the quantity of money
  E) decrease government expenditures, increase taxes, do not change the quantity of money

Question 2

Refer to the figure above. Which of the following methods is the best to compensate the losers from opening Lithasia to international trade?
 
  A) Sellers in Lithasia could be taxed and the revenue could be used to compensate buyers.
  B) Buyers in Lithasia could be taxed and the revenue could be used to compensate sellers.
  C) Both buyers and sellers could be taxed and the revenue could be retained by the government.
  D) The sellers in Lithasia could sell the pens at a price above the equilibrium price in the domestic market.



Viet Thy

  • Sr. Member
  • ****
  • Posts: 329
Answer to Question 1

A

Answer to Question 2

B



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

Did you know?

Colchicine is a highly poisonous alkaloid originally extracted from a type of saffron plant that is used mainly to treat gout.

Did you know?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

For a complete list of videos, visit our video library