History Test (Great Depression, New Deal) Flashcards
(47 cards)
Gross National Product
The market value of goods and services produced by labor and property supplied by U.S. residents, regardless of where they are located.
Gross Domestic Product
measurement that seeks to capture a country’s economic output.
Recession
a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.
Depression
extreme recession that lasts three or more years or which leads to a decline in real gross domestic product (GDP) of at least 10% in a given year.
Margin
a concept used to describe the current level of consumption or production of a good or service
Stock Index
a statistical source that measures financial market fluctuations.
Equity
the concept or idea of fairness in economics, particularly in regard to taxation or welfare economics.
Kellogg-Briand Pact
an agreement to outlaw war signed on August 27, 1928 (President Coolidge)
Indian Citizenship Act
granted Indians who didn’t already
have U.S. citizenship status if born in the country (1924)
Bonus Bill
paid insurance to veterans (passed over CC’s veto)
McNary-Haugen Farm Relief Bill
allow gov’t to
buy agricultural surpluses and sell later, either here or abroad.
DJIA (Dow Jones Industrial Average)
way for measuring price index
“Black
Thursday”
October 24, 1929, Market drops but
a number of big banks
“Black
Tuesday”
October 29, 1929, Market collapses, this is considered the start of
the Great Depression.
Hoovervilles
a shantytown built by unemployed and destitute people during the Depression of the early 1930s – named for President Hoover/ blamed for beginning of depression
laissez-faire
a type of economic system in which transactions between private groups of people are free from any form of economic interventionism.
Hawley-Smoot Tariff
(1930) raised US tariffs on over 20,000 imported goods. it made the Great Depression worse than it would have been
Reconstruction Finance Corporation (1932)
aid to state/local governments,
along with businesses and banks (sometimes based on political connections),
the latter of which further alienates citizens.
The Dust Bowl
the drought-stricken southern plains region of the United States, which suffered severe dust storms during a drought in the 1930s. people and livestock were killed and crops failed across the entire region
The Bonus Army
The Bonus Army was a group of 43,000 demonstrators – 17,000 veterans of U.S. involvement in World War I, their families, and affiliated groups – who gathered in Washington, D.C., in mid-1932 to demand early cash redemption of their service bonus certificates.
New Deal Coalition
American political coalition that supported the Democratic Party beginning in 1932. The coalition is named after President Franklin D. Roosevelt’s New Deal programs, and the follow-up Democratic presidents. It was composed of voting blocs who supported them.
Keynesianism and the multiplier effect
if government spending increases, then output will increase
“Priming the pump”
Encourage the growth or action of something
“multiplier effect”
one agent’s spending is another agent’s income
