Great Depression Econ Test

Pension

A regular payment made during a person’s retirement from an investment fund to which that person or their employer has contributed during their working life.

Social Security

A form of federal pension & disability aid.

Price ceiling

Maximum price amounts, such as rent control caps—to protect consumers.

Manufacturing

The making of articles on a large scale using machinery; industrial production.

Frictional unemployment

The unemployment which exists in any economy due to people being in the process of moving from one job to another.

Buying on margin

The practice of purchasing stocks with borrowed funds, allowing investors to buy more shares than they could with their own money.

Macroeconomics

The branch of economics that studies the behavior and performance of an economy as a whole.

Franklin D. Roosevelt

President after the Great Depression, tried to fix everything with the New Deal.

Glass-Steagall Act

A New Deal act that limited investment activity and strengthened loan requirements.

Great Recession

The economic downturn from 2007 to 2009 after the bursting of the U.S. housing bubble and the global financial crisis.

Seasonal unemployment

Predictable unemployment that usually occurs at the same time each year.

Fiscal policy

The use of government spending and taxation to influence the economy.

Agriculture

The science or practice of farming, including cultivation of the soil for growing crops and rearing animals for food, wool, and other products.

Keynesian Economics

The theory that the government could help the economy recover by creating demand through public works projects and government jobs, spurring consumer spending.

Great Depression

A severe, worldwide economic disintegration symbolized in the United States by the stock market crash on 'Black Thursday', October 24, 1929.

Interventionism

Governmental interference in economic affairs.

Labor unions

An organization of workers in a trade, industry, or company created to represent the workers in negotiations with management.

Welfare state

A system whereby the government protects the health and well-being of its citizens, especially those in need, through grants, pensions, and other benefits.

John M. Keynes

An early 20th-century British economist, known as the founder of Keynesian economics and the father of modern macroeconomics.

Structural unemployment

Unemployment resulting from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand.

Karl Marx

A 19th-century German philosopher known for his work in political philosophy and as an advocate for communism.

Price floor

A government- or group-imposed price control on how low a price can be charged for a product or service.

Speculation

The act of purchasing an asset that has substantial risk of losing value but also holds the hope of gaining value in the near future.

Assembly line

A process of production which enables a continuous efficient rolling process, usually involving a good moving along a conveyor belt.

Cyclical unemployment

When the demand for goods and services in an economy decreases, forcing companies to lay off workers to cut costs.