Great Depression Vs. "Great Recession"

The picture shows a large crowd of people rushing towards a bank, indicating a bank run. A bank run occurs when a large number of customers withdraw their deposits from a bank due to fears of the bank's insolvency or financial instability. The image captures the panic and urgency associated with a bank run, as people try to secure their money before the bank potentially collapses.

not-available-via-ai

During the Great Depression, the gatherings of shacks and shanty villages across America were commonly referred to as "shanty towns" or "hoovervilles." These makeshift settlements were named after President Herbert Hoover, who was widely blamed for the economic crisis. The term "hoovervilles" was used to express the public's frustration and discontent with the government's handling of the situation. These settlements were characterized by extreme poverty, unemployment, and a lack of basic amenities.

FDR and Obama's hands-on approach to the economy suggests a shift towards Keynesian Economics. This economic theory advocates for government intervention in the economy through fiscal policies such as increased government spending and tax cuts to stimulate economic growth and reduce unemployment. Both FDR and Obama implemented policies that aligned with Keynesian principles, such as the New Deal and the American Recovery and Reinvestment Act, respectively. This approach contrasts with Classical Economics, which emphasizes limited government intervention and relies on market forces to regulate the economy.

FDR had to create his own agencies with his New Deal, whereas Obama was only fixing, repairing, restoring, or redoing those agencies already set in place by FDR. This suggests that FDR had to establish new government organizations and programs as part of his economic recovery plan, while Obama focused on improving or addressing issues within the existing agencies and programs implemented by FDR.

not-available-via-ai

The current recession can be caused by high interest rates and escalating rates of foreclosure. High interest rates make borrowing more expensive, which can lead to decreased consumer spending and investment. Escalating rates of foreclosure indicate a decline in the housing market, which can have a ripple effect on the overall economy. While George Bush's actions may have had some impact on the economy, it is not specified in the question and cannot be assumed as a cause. The option "Too Many Economics Worksheets stapled together" is not a plausible cause for a recession.

During the Great Depression, speculation was focused mainly on stocks as people invested heavily in the stock market, leading to its collapse. In contrast, during the "Great Recession," speculation shifted towards mortgages, specifically house mortgages or home mortgages. This refers to the risky practice of lending money to individuals who may not have been able to afford it, which contributed to the housing market crash and subsequent economic downturn.

The "Great Recession" refers to a severe global economic downturn that occurred from late 2007 to mid-2009. It is commonly accepted that the recession lasted for a total of 18 months. Therefore, the correct answer is 18.

Not purchasing foreign goods is not a cause of the Great Depression. The Great Depression was primarily caused by factors such as the stock market crash of 1929, bank failures, the Smoot-Hawley Tariff, and buying stocks on speculation. The decrease in foreign trade due to a lack of purchasing foreign goods may have been a consequence of the economic downturn, but it was not a direct cause of the Great Depression.