Using a graph, analyze the Great Depression from a Keynesian perspective. What happened to unemployment?
What will be an ideal response?
In the below figure, the equilibrium before the depression was at a price level of 100 and real GDP of $1 trillion. The depression was caused by a reduction in aggregate demand to AD1933. Because prices were not flexible, real GDP fell to $700 billion. The reduced output would be associated with a large increase in unemployment.
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Which of the following is TRUE about the political and market systems of voting?
A) The political voting system functions according to proportional rule, while the market voting system functions according to majority rule. B) The political voting system functions according to majority rule, while the market voting system functions according to proportional rule. C) The political voting system functions according to minority rule, while the market voting system functions according to majority rule. D) The political system and the market system are identical.
If investment spending depends on GDP, this is called induced investment
a. True b. False Indicate whether the statement is true or false