Between 1929 and 1933, the U.S. economy went from a situation of full employment to one of 25 percent unemployment. Which of the following events would you have expected to observe over this relatively short period of time?
a) The rate of inflation in the U.S. increased.
b) The rate of inflation in the U.S. decreased.
c) The rate of inflation in the U.S. remained unchanged.
d) It is impossible to speculate on what happened to the rate of inflation from the information given.

Question

Between 1929 and 1933, the U.S. economy went from a situation of full employment to one of 25 percent unemployment.   Which of the following events would you have expected to observe over this relatively short period of time?
	a)  The rate of inflation in the U.S. increased.
	b)  The rate of inflation in the U.S. decreased.
	c)  The rate of inflation in the U.S. remained unchanged.
	d)  It is impossible to speculate on what happened to the rate of inflation from the information given.

anonymous · Answer

B is the answer because we see unemployment so there is not to much spending so the inflation rate would decrease.