3) Before the great depression, the conventional wisdom among economists and policy makers was that the economy is largely self-regulating. a) Is this view consistent or inconsistent with keynesian economics? Explain. b) What effect did the Great Depression have on conventional wisdom? c) Contrast the response of policy makers during the 2007-2009 recession to the actions of policy makers during the Great Depression. What would have been the likely outcome of the 2007-2009 recession if policy makers had responded in the same fashion as policy makers during the Great Depression?

PART A: Which of the following identifies the central idea of the text?A. The Great Depression was a very difficult time for America, and the government took action to help the economy recover.B. The Great Depression could have easily been avoided if Americans had been more informed on how the stock market and banks operated.C. The Great Depression could not have been prevented, as the previous decades had experienced nothing but growth.D. The Great Depression was a horrible economic time for America, but the government's violation of citizens' rights while helping the economy recover was much worse.

What problem did many countries face at the start of the Great Depression?A.Rising levels of inflationB.Rising levels of deflationC.Rising deflation with rising economic growthD.Rising inflation with flat economic growth

How did the economic impacts of the Great Depression differ in the United States and in the Soviet Union?A.The United States instituted government regulation of business, while the Soviet Union did not.B.The United States suffered from high unemployment, while the Soviet Union did not.C.The United States borrowed money to fund government spending, while the Soviet Union did not.D.The United States eliminated all tariffs on foreign goods, while the Soviet Union did not.SUBMITarrow_backPREVIOUS

Which statement best describes how federalism changed as a result of the Great Depression?A.The state and federal governments came to share responsibilities for employment programs in a way they had not before.B.The state and federal governments came into conflict over whose responsibility it was to improve the lives of those in poverty.C.The federal government was unable to fund state governments, which gave them more control of their own financial affairs.D.State governments came to depend on federal money to help them financially during a crisis.

Keynesian economists argue that during a recession, the government should use fiscal policy tools like?  A. Increasing interest rates  B. Reducing government spending  C. Cutting taxes and increasing spending  D. Implementing strict monetary controls