History Test (Great Depression, New Deal)

Question 1

Gross National Product

Answer 1

The market value of goods and services produced by labor and property supplied by U.S. residents, regardless of where they are located.

Question 2

Gross Domestic Product

Answer 2

measurement that seeks to capture a country’s economic output.

Question 3

Recession

Answer 3

a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

Question 4

Depression

Answer 4

extreme recession that lasts three or more years or which leads to a decline in real gross domestic product (GDP) of at least 10% in a given year.

Question 5

Margin

Answer 5

a concept used to describe the current level of consumption or production of a good or service

Question 6

Stock Index

Answer 6

a statistical source that measures financial market fluctuations.

Question 7

Equity

Answer 7

the concept or idea of fairness in economics, particularly in regard to taxation or welfare economics.

Question 8

Kellogg-Briand Pact

Answer 8

an agreement to outlaw war signed on August 27, 1928 (President Coolidge)

Question 9

Indian Citizenship Act

Answer 9

granted Indians who didn’t already
have U.S. citizenship status if born in the country (1924)

Question 10

Bonus Bill

Answer 10

paid insurance to veterans (passed over CC’s veto)

Question 11

McNary-Haugen Farm Relief Bill

Answer 11

allow gov’t to
buy agricultural surpluses and sell later, either here or abroad.

Question 12

DJIA (Dow Jones Industrial Average)

Answer 12

way for measuring price index

Question 13

“Black
Thursday”

Answer 13

October 24, 1929, Market drops but
a number of big banks

Question 14

“Black
Tuesday”

Answer 14

October 29, 1929, Market collapses, this is considered the start of
the Great Depression.

Question 15

Hoovervilles

Answer 15

a shantytown built by unemployed and destitute people during the Depression of the early 1930s – named for President Hoover/ blamed for beginning of depression

Question 16

laissez-faire

Answer 16

a type of economic system in which transactions between private groups of people are free from any form of economic interventionism.

Question 17

Hawley-Smoot Tariff

Answer 17

(1930) raised US tariffs on over 20,000 imported goods. it made the Great Depression worse than it would have been

Question 18

Reconstruction Finance Corporation (1932)

Answer 18

aid to state/local governments,
along with businesses and banks (sometimes based on political connections),
the latter of which further alienates citizens.

Question 19

The Dust Bowl

Answer 19

the drought-stricken southern plains region of the United States, which suffered severe dust storms during a drought in the 1930s. people and livestock were killed and crops failed across the entire region

Question 20

The Bonus Army

Answer 20

The Bonus Army was a group of 43,000 demonstrators – 17,000 veterans of U.S. involvement in World War I, their families, and affiliated groups – who gathered in Washington, D.C., in mid-1932 to demand early cash redemption of their service bonus certificates.

Question 21

New Deal Coalition

Answer 21

American political coalition that supported the Democratic Party beginning in 1932. The coalition is named after President Franklin D. Roosevelt’s New Deal programs, and the follow-up Democratic presidents. It was composed of voting blocs who supported them.

Question 22

Keynesianism and the multiplier effect

Answer 22

if government spending increases, then output will increase

Question 23

“Priming the pump”

Answer 23

Encourage the growth or action of something

Question 24

“multiplier effect”

Answer 24

one agent’s spending is another agent’s income

Question 25

Three R’s of New Deal

Answer 25

Relief, Recovery, Reform

Question 26

“The Bank Holiday”

Answer 26

For an entire week in March 1933, all banking transactions were suspended in an effort to stem bank failures and ultimately restore confidence in the financial system.

Question 27

Emergency Banking Act

Answer 27

(1933) a bill passed in the midst of the Great Depression that took steps to stabilize and restore confidence in the U.S. banking system.

Question 28

Glass-Steagall Act

Answer 28

(1933) Separated commercial and investment banking (commercial banks no longer allowed to
underwrite or trade in stocks)

Question 29

Federal Deposit Insurance Corporation (FDIC)

Answer 29

an independent agency created by the Congress to maintain stability and public confidence in the nation’s financial system.

Question 30

“First Hundred Days”/First New Deal

Answer 30

FOCUSED ON RELIEF
repeal of 21st Amendment
- Federal Emergency Relief Administration
- Agricultural Adjustment Act
- Civilian Conservation Corps
- National Industrial Recovery Act
- Creation of the Securities and Exchange Commission

Question 31

Federal Emergency Relief Administration

Answer 31

created unskilled jobs with local and state
governments

Question 32

Agricultural Adjustment Act

Answer 32

sought to increase prices of farm goods by….
○ Used subsidies to get farmers to kill excess livestock and remove land from
production.

Question 33

Civilian Conservation Corps

Answer 33

The Civilian Conservation Corps was a voluntary government work relief program that ran from 1933 to 1942 in the United States for unemployed, unmarried men ages 18–25 and eventually expanded to ages 17–28

Question 34

National Industrial Recovery Act

Answer 34

• US labor law and consumer law to authorize the president to regulate industry for fair wages and prices that would stimulate economic recovery.
• established public works program

Question 35

Creation of the Securities and Exchange Commission

Answer 35

“SEC” was created after 1929 stock market crash
To restore the country’s faith in the economy, these acts provide increased structure and improved oversight to the securities market.

Question 36

The Second New Deal (1935-1938)

Answer 36

• focused on building a base for economic recovery and making sure such an economic collapse didn’t repeat itself.
• Rural Electrification Administration
• Works Progress Administration
• Establishment of Social Security
• Wagner Act

Question 37

Rural Electrification Administration

Answer 37

provided federal loans for the installation of electrical distribution systems to serve isolated rural areas of the United States

Question 38

Works Progress Administration

Answer 38

an American New Deal agency that employed millions of jobseekers to carry out public works projects, including the construction of public buildings and roads

Question 39

Social Security

Answer 39

provides financial protection for our nation’s people, supporting Americans throughout all of life’s journeys

Question 40

Wagner Act

Answer 40

established the National Labor Relations Board and guaranteed workers the right to
organize and engage in collective bargaining

Question 41

Fr. Charles Coughlin

Answer 41

• against new deal
• priest
• anti-semtatic
• supporting Italy and Germany policies

Question 42

Dr. Francis Townsend

Answer 42

-against new deal
- wants gov’t to find a way for more demand in the economy
- thinks they should create old age revolving pensions (ppl 60+, retired, and non habitual criminals recieve 200 a month and they have to spend in those 30 days)
- Townsend funds
- convicted on contempt of congress

Question 43

Gov/Sen Huey Long

Answer 43

• against new deal
• at first a supporter, not a white supremacist
• his problem is FDR isn’t really focus on distributing economic income wealth
• expands highways
• creates “Share our Wealth”
• gives out free textbooks to both black and white
• anti big corp.
• believed that people should have a cap income (leftover money should be given to people who have not as much money)

Question 44

court-packing scheme

Answer 44

(February 1937) the idea of adding justices to the Supreme Court or lower courts to shift the balance in a liberal, conservative or other direction

Question 45

Fair Labor Standards Act

Answer 45

established the federal minimum wage, along w/ the standard 40 hour work week and overtime and placing substantial limits on child labor.

Question 46

Tennessee Valley Authority

Answer 46

built hydroelectric dams along the Tennessee River for flood control and to generate hydroelectric power

Question 47

“Black Cabinet”

Answer 47

a group of African Americans who served as public policy advisors to President Franklin D. Roosevelt and First Lady Eleanor Roosevelt in his terms in office from 1933 to 1945.