Which of the following best describes the economic dynamic of the Great

Question

Which of the following best describes the economic dynamic of the Great Depression?

a. Economic uncertainty prompted a dramatic increase in the labor force participation rate.

b. Plummeting sales and lack of consumer confidence triggered a surge in the trade deficit.

c. Declining sales tax revenue triggered a disproportionate rise in income taxes.

d. Superior competitors from overseas forced an inefficient domestic industry to its knees.

e. Mass unemployment and the lack of investment triggered a devastating cycle of deflation.

ANS: E TOP: The Great Depression

DIF: Difficult REF: Full p. 794 | Seagull p. 811

MSC: Analyzing OBJ: 5. List the causes of the Great Depression and discuss the effectiveness of the governments responses by 1932.

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