1. Which statement is true?

a) Twenty-five million Americans were officially unemployed in 1933.

b) Our economy expanded steadily from 1933 to 1945.

c) Once the Great Depression began in 1929, our economy moved almost steadily downhill until the beginning of 1940.

d) None of the above.

2. In the early 19th century, the United States suffered from a scarcity of

a) land and labor c) labor-relative to land

b) land-relative to labor d) neither land nor labor

3. Which statement is false?

a) President Eisenhower presided over three recessions.

b) Our economy has not had an unemployment rate below 5 percent since the early 1940s.

c) There were six straight years of economic expansion under President Reagan.

d) None of the above. (All of the above are true.)

4. Which of these best describes the post-World War II recessions in the United States?

a) They were all very mild, except for the 1981-82 recession.

b) They were all caused by rising interest rates.

c) None lasted more than one year.

d) Each was accompanied by a decline in output of goods and services and an increase in unemployment.

5. Between 1929 and 1933, output fell .

a) by about one-tenth c) by about one-half

b) by about one-third d) by about two-thirds

6. The inflation rate declined during the presidency of

a) both Eisenhower and Reagan

b) neither Eisenhower nor Reagan

c) Reagan

d) Eisenhower