Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

This above link (taken from the text book), refers to economic data taken from the US during the years after the Great Depression from 1929

image text in transcribed

This above link (taken from the text book), refers to economic data taken from the US during the years after the Great Depression from 1929 to 1940. Can you explain why the US economy was behaving in this way during these years?

image text in transcribed
Unemployment Real GNP Consumption Investment Government Year Rate (1) (2) (2) (2) Purchases (2) 1929 3.2 203.6 139.6 40.4 22.0 1930 8.9 183.5 130.4 27.4 24.3 193 16.3 169.5 126.1 16.8 25.4 1932 24.1 144.2 114.8 4.7 24.2 1933 25.2 141.5 112.8 5.3 23.3 1934 22.0 154.3 118.1 94 26.6 193 20.3 169.5 125.5 18.0 27.0 1936 17.0 193.2 138.4 24.0 31.8 1937 14.3 203.2 43.1 29 9 30.8 1938 19.1 192.9 140.2 17.0 33.9 1939 17.2 209.4 148.2 24.7 35.2 1940 14.6 227.2 155.7 33.0 36.4 Source: Historical Statistics of the United States, Colonial Times to 1970, Parts I and ! (Washington, DC: U.S. Department of Commerce, Bureau of the Census, 1975). Note: (1) The unemployment rate is series D9. (2) Real GNP, consumption, investment, and government purchases are series F3, F48, F52, and F66, and are measured in billions of 1958 dollars. (3) The interest rate is the prime Commercial Nominal Interest Money Supply Price Level Inflation Real Money Year Rate (3) (4) (5) (6) Balances (7) 1929 5.9 26.6 50.6 52.6 1930 3.6 25.8 49.3 -2.6 52.3 1931 2.6 24.1 44.8 -10.1 54.5 1932 2.7 21.1 10.2 -9.3 52.5 1933 1.7 19.9 39.3 -2.2 50.7 1934 1.0 21.9 42.2 7.4 51.8 1935 0.8 25.9 42.6 0.9 60.8 1936 0.8 29.6 42.7 0.2 52.9 1937 0.9 30.9 44.5 4.2 69.5 1938 0.8 30. 43.9 -1.3 69.5 1939 0.6 34.2 43.2 -1.6 79.1 1940 0.6 39.7 43.9 1.6 90.3 Paper rate, 4-6 months, series X445. (4) The money supply is series X414, currency plus demand deposits, measured in billions of dollars. (5) The price level is the GNP deflator (1958 - 100), series E1. (6) The inflation rate is the percentage change in the price level series. (7) Real money balances, calculated by dividing the money supply by the price level and multiplying by 100, are in billions of 1958 dollars

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

South Western Federal Taxation 2017 Comprehensive

Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young

40th Edition

1305874161, 978-1305874169

Students also viewed these Economics questions

Question

each layer? (10 marks/

Answered: 1 week ago