The "New Deal" programs of the 1930s aimed at
(a) transforming American capitalism into a planned socialist economy.
(b) introducing short-term measures to cure the depression but no fundamental changes in the American economy.
(c) introducing measures to deal with the crises and cure the depression combined with measures to restructure important aspects of the economy and increase the role of government in it.
(d) reintroducing laissez-faire policies (non-government intervention) like those that had worked in the 19th century.
(c)
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When firms in an industry are selling similar products, and they agree to share the market,
A) each firm earns a profit even though marginal cost is greater than marginal revenue. B) each firm secures a net revenue about as large as it would have received if it were the only seller. C) they try to keep each firm's price above its marginal cost. D) they tend to produce higher prices and larger output. E) the agreement will enforce itself because none of the firms will have an interest in triggering a competitive struggle.
The Case in Point titled "Velocity and the Confederacy" suggests that during the Civil War, the South faced
A) hyperinflation and rising velocity. B) hyperinflation and falling velocity. C) deflation and rising velocity. D) deflation and falling velocity.