Each of the following is a fact about the Great Depression except
A) from full employment in 1929, real GDP fell until it was nearly 40 percent below potential output by 1933.
B) prices remained relatively stable throughout the period of the Great Depression.
C) unemployment had reached a quarter of the labor force by 1933.
D) real interest rates increased from four percent in 1929 to nearly 13 percent in 1931.

Question

Quizplus · Accepted Answer

Prices did not remain stable during the Great Depression; they fell significantly, reflecting the deflationary environment of the era. This deflation exacerbated the economic downturn, making debts more expensive in real terms and contributing to the severity of the depression.

Each of the Following Is a Fact About the Great