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Economics 11th Edition by Stephen Slavin
Edition 11ISBN: 978-0078021800Economics 11th Edition by Stephen Slavin
Edition 11ISBN: 978-0078021800 Exercise 1
Which statement is true?
A) Twenty-five million Americans were officially unemployed in 1933.
B) Our economy expanded steadily from 1933 to 1945.
C) Once the Great Depression began in 1929, our economy moved almost steadily downhill until the beginning of 1940.
D) None of the above.
A) Twenty-five million Americans were officially unemployed in 1933.
B) Our economy expanded steadily from 1933 to 1945.
C) Once the Great Depression began in 1929, our economy moved almost steadily downhill until the beginning of 1940.
D) None of the above.
Explanation
Verified
Verified
There are four statements with respect to nation- U is given. Apply those statements one-by-one and check which one is TRUE.
(A) The first statement states that the number of people unemployed in 1933 is 25 million. This statement is FALSE because the official unemployment rate is 25% which means around 13 million people are unemployed.
The figure 25 is correct but its percentage and not million.
(B) The second statement is also FALSE because the economy has not expanded in a regular manner. The economy expanded from 1933 to 1937 but due to tight money and balanced budget policy, the economy faced deep recession of 1937-38. And after changing these policies, the economy starts expanding for the next 7-years.
Thus, the expansion was irregular.
(C) The third statement is also FALSE because the economy was not moved downhill in a regular manner (steadily) in the time period of 1929 to 1940. It falls from 1929-1933, then expands till 1937, then again falls 1937-1938 (due to policies) and at last depression ends and this time (from June 1938) the expansion would continue for 7-years.
(D) The fourth statement is TRUE because none of the above options are correct.
Conclusion
The correct option is (D)
(A) The first statement states that the number of people unemployed in 1933 is 25 million. This statement is FALSE because the official unemployment rate is 25% which means around 13 million people are unemployed.
The figure 25 is correct but its percentage and not million.
(B) The second statement is also FALSE because the economy has not expanded in a regular manner. The economy expanded from 1933 to 1937 but due to tight money and balanced budget policy, the economy faced deep recession of 1937-38. And after changing these policies, the economy starts expanding for the next 7-years.
Thus, the expansion was irregular.
(C) The third statement is also FALSE because the economy was not moved downhill in a regular manner (steadily) in the time period of 1929 to 1940. It falls from 1929-1933, then expands till 1937, then again falls 1937-1938 (due to policies) and at last depression ends and this time (from June 1938) the expansion would continue for 7-years.
(D) The fourth statement is TRUE because none of the above options are correct.
Conclusion
The correct option is (D)
Economics 11th Edition by Stephen Slavin
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