Great Depression Chapter 12

Question 1

What was the US unemployment rate in 1929

Answer 1

3.2% unemployment 1929

Question 2

What was the US unemployment rate in 1933

Answer 2

25% unemployment 1933

Question 3

How much did GDP fall from 1929 to 1933?

Answer 3

-27%

Question 4

How much did world trade fall from 1929 to 1933?

Answer 4

3 billion 1929

5 million 1933

Question 5

Which component of GDP fell the most?

Answer 5

business investment

Question 6

How much did business investment fall during the Great Depression?

Answer 6

90%

Question 7

What did Smoot Hawley Tarrif Act of 1930 do?

Answer 7

raised tariffs in US to highest levels ever

Question 8

What was the size of the average tariff on imported US goods after this took effect?

Answer 8

average of 60%

Question 9

What is the average tariff in the US today?

Answer 9

2%

Question 10

How did it impact trade across the globe?

Answer 10

plummeted

Question 11

How did it impact trade for the US economy?

Answer 11

Trade was hurts US

Question 12

How many banks closed during the Great Depression?

Answer 12

10,500

Question 13

M2 fell by blank % from 1929 to 1933

Answer 13

M2 fell by 31% from 1929 to 1933

Question 14

When the money supply falls, what happens to interest rates during the Great Depression?

Answer 14

Interest rates rise when the money supply falls

Question 15

With banks failing, many people kept their savings at home. When bank deposits fell, they could no longer make enough loans.

Answer 15

True

Question 16

There was no FDIC in 1930. If a bank failed, many depositors would lose all they had in the bank.

Answer 16

True

Question 17

The US was on a Gold Standard in 1930.

Answer 17

True

Question 18

There was a liquidity crisis in that many businesses could no longer get loans.

Answer 18

True

Question 19

What happened to inflation during this time during the Great Depression?

Answer 19

prices fell 25%

deflation occurs in hard times

Question 20

what happens in hard times

Answer 20

deflation

Question 21

what was the impact of the change in the price level on consumer spending?

Answer 21

consumers kept waiting to buy something; consumer spending fell