All flashcards
Flashcard 1: Which country experienced hyperinflation during the early 1920s?
Answer: Germany. Weimar Republic printed money to pay war reparations.
Flashcard 2: What event in 1929 marked the beginning of the Global Economic Crisis?
Answer: The Wall Street Crash. Stock market collapse triggered worldwide economic downturn.
Flashcard 3: What was the primary economic policy tool used by governments to combat the crisis?
Answer: Fiscal stimulus. Government spending increases to boost economic activity.
Flashcard 4: Which policy involves government borrowing to fund infrastructure and public works?
Answer: Deficit spending. Government borrows to fund economic stimulus projects.
Flashcard 5: Which policy tool involves government spending and tax adjustments to influence the economy?
Answer: Fiscal policy. Uses taxation and spending to manage economic cycles.
Flashcard 6: Identify the economic condition characterized by rising prices and increased unemployment.
Answer: Stagflation. Economic stagnation combined with rising inflation.
Flashcard 7: What economic phenomenon involves a general decline in prices, often leading to reduced consumer spending?
Answer: Deflation. Falling prices reduce business profits and employment.
Flashcard 8: Which international financial institution was created to provide loans to developing countries?
Answer: The World Bank. Provides reconstruction and development financing globally.
Flashcard 9: Identify the economic theory that suggests government intervention can stabilize economies.
Answer: Keynesian economics. Government spending can stimulate demand during recessions.
Flashcard 10: What term describes the severe economic downturn of the 1930s?
Answer: The Great Depression. Decade-long economic collapse following 1929 crash.
Flashcard 11: Which international organization was founded in 1944 to help stabilize global economies?
Answer: International Monetary Fund (IMF). Created to provide financial stability and exchange rate coordination.
Flashcard 12: Which economic strategy focuses on reducing government intervention in the market?
Answer: Laissez-faire. Free market approach with minimal government interference.
Flashcard 13: Name the 1930 tariff act that worsened the Great Depression by reducing international trade.
Answer: The Smoot-Hawley Tariff Act. Protectionist tariffs reduced global trade volumes.
Flashcard 14: What is the process by which a country experiences a rapid decrease in the value of its currency?
Answer: Currency devaluation. Currency loses purchasing power relative to other currencies.
Flashcard 15: Identify the plan that aimed to rebuild European economies after World War II.
Answer: The Marshall Plan. US aid program for European economic recovery.
Flashcard 16: What is the term for a prolonged period of high unemployment and low economic activity?
Answer: Economic depression. Severe economic contraction lasting multiple years.
Flashcard 17: Which agreement ended the Bretton Woods system of fixed exchange rates?
Answer: The Smithsonian Agreement. Devalued dollar and introduced floating exchange rates.
Flashcard 18: What is the term for a country's total economic output adjusted for inflation?
Answer: Real GDP. Measures actual economic growth removing price effects.
Flashcard 19: Which global crisis in 2008 was triggered by the collapse of housing markets?
Answer: The Global Financial Crisis. Subprime mortgage crisis spread globally.
Flashcard 20: Identify the 1920s practice of buying stocks with borrowed money.
Answer: Buying on margin. Leveraged speculation increased market volatility risk.
Flashcard 21: What is the economic term for a rapid increase in the general price level?
Answer: Inflation. Rising prices reduce purchasing power of money.
Flashcard 22: Which international body was established to promote international trade post-World War II?
Answer: The General Agreement on Tariffs and Trade (GATT). Multilateral framework for reducing trade barriers.
Flashcard 23: Which economic crisis led to the widespread adoption of welfare systems in Europe?
Answer: The Great Depression. Economic hardship led to social safety net expansion.
Flashcard 24: Identify the economic policy that aims to control the money supply and interest rates.
Answer: Monetary policy. Central bank tools to influence economic activity.
Flashcard 25: Name the 1944 conference that established the Bretton Woods system.
Answer: The Bretton Woods Conference. Created international monetary system and exchange rates.
Flashcard 26: What is the economic term for a rapid decline in economic activity across an economy?
Answer: Recession. Temporary economic contraction lasting several months.
Flashcard 27: Which British economist advocated for increased government spending during a recession?
Answer: John Maynard Keynes. Developed theory of deficit spending during downturns.
Flashcard 28: What was the main cause of the 1929 stock market crash?
Answer: Speculative bubble. Asset prices exceeded their fundamental economic value.
Flashcard 29: Which policy involves reducing interest rates to stimulate economic activity?
Answer: Monetary easing. Lower interest rates encourage borrowing and investment.
Flashcard 30: Identify the economic theory that suggests government intervention can stabilize economies.
Answer: Keynesian economics. Government spending can stimulate demand during recessions.