Each of the following is a fact about the Great Depression except
A) from full employment in 1929, real GDP fell until it was nearly 40 percent below potential output by 1933.
B) consumption spending collapsed: by 1932 real consumption spending was less than one-ninth of what it had been three years before.
C) unemployment had reached a quarter of the labor force by 1933.
D) investment spending collapsed: by 1932 real investment spending was less than one-ninth of what it had been three years before.

Question

Quizplus · Accepted Answer

Real consumption spending during the Great Depression did indeed fall significantly, but the statement that it was less than one-ninth of what it had been three years before is an exaggeration. While consumption decreased, it did not plummet to such an extreme extent.

Each of the Following Is a Fact About the Great