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, unemployment rates skyrocketed, while the output of the economy decreased. Prices also decreased, but not at the same rate as unemployment, leading to deflationary pressures. This is why choice B, which states that unemployment increased while output and prices decreased, is the best choice.