Let’s sum up some basic facts of U.S. economic history with numbers:

a. First, let’s measure the size of the Great Depression:

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Real GDP in 1929 (peak): $323 billion Price level in 1929: 33 Real GDP in 1933 (trough): $206 billion Price level in 1933: 24 Calculate the percent change in real GDP and the percent change in the price level from 1929 to 1933. First, calculate the total change, and then divide it by the number of years to get the more typical measure of "percent per year." (Note: This is four full years, not three or five.)