Which of the following happened during the Great Depression?
A)Unemployment and prices increased while output decreased.
B)Unemployment increased while output and prices decreased.
C)Unemployment and prices decreased while output increased.
D)Unemployment and output decreased while prices increased.
E)Unemployment and output increased while prices decreased.

Question

Quizplus · Accepted Answer

During the Great Depression, there was a significant increase in unemployment while output and prices decreased. This was due to the decrease in consumer spending, which led to a decrease in demand for goods and services, resulting in businesses cutting back on production and laying off workers. This led to a cycle of further reductions in spending and employment, ultimately resulting in a deep and prolonged economic downturn.

Which of the Following Happened During the Great Depression