The following figure introduces the relationship between industrial production and wholesale price index changes between the years 1929-1935. What is the purpose of the following figure?
What will be an ideal response?
The purpose is to show that countries that left the gold standard early and adopted counter-deflationary monetary policies, such as Australia and the United Kingdom, experienced milder declines in output during the Great Depression. Countries such as France and Switzerland that stuck to the gold standard longer had greater decline in price level and output.
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The Fed has a monopoly on printing paper currency in the United States
Indicate whether the statement is true or false
If cyclical unemployment is zero, the economy is
A. Outside the production possibilities curve. B. On the production possibilities curve that shifts inward. C. On the fixed production possibilities curve. D. Inside the production possibilities curve.