During the Great Depression, consumers and producers in the United States dramatically reduced their spending as compared to the quantity of goods and services available at the time. This statement best represents this economic concept:
A)Resources are scarce.
B)When markets don't achieve efficiency, government intervention can improve society's welfare.
C)Overall spending sometimes gets out of line with the economy's productive capacity.
D)Government policies can change spending.

Question

Quizplus · Accepted Answer

This statement describes the concept of a demand-supply gap, where overall spending (demand) does not align with the economy's productive capacity (supply). This can lead to economic downturns such as the Great Depression.

During the Great Depression, Consumers and Producers in the United