The Great Depression is still the subject of controversy, including the question(s) of
(a) what caused the initial downturn.
(b) why the economy contracted for so long (1929 to 1932) and why it contracted so much
(real GNP fell about 30%).
(c) whether government policy helped or hindered the recovery attempt.
(d) all of the above.
(d)
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A group of firms acting together to limit output, raise price, and increase economic profit is a called a
A) duopoly. B) monopolistic oligopoly. C) competitive oligopoly. D) cartel. E) multi-firm competitive monopoly.
With the federal funds rate near zero and the economy still struggling, In response to already low interest rates doing little to stimulate the economy, the Fed began buying 10-year Treasury notes and certain mortgage-backed securities to keep
interest rates low. This policy is known as A) quantitative easing. B) securities-bubble deflating. C) contractionary monetary policy. D) inflation targeting.