Lecture 23 - Key Terms and Questions Flashcards
Keynesians argued that the reason why deficit spending did not “work” (eliminate unemployment) in the 1930s but did work in World War II was that wartime deficits ____.
were much bigger
During World War II candy makers evaded price controls by
substituting inferior ingredients and selling at the official price
One problem generated by price controls in World War II was “forced up-trading.” In this context what is the best example of forced uptrading?
low-price-low-quality clothing disappears
During the period of selective controls in World War II, the Office of Price Administration attempted to control strategic (industrial) prices while it left “unimportant” prices free. In class I argued that this policy was a _____ because ______.
failure, encouraged excessive expansion of the industrial sector
What was th “Hold the Line Order of World War II? Who gave the Hold the Line order?
- Office of Price Administration sets specific maximum prices
- (fruitcake memo)
- Given by FDR
As a percentage of total expenditures the most important source of revenues in World War II was ____ (Reading Question)
taxes
Most students got the following out of professor Rockoff’s class this semester.
a steel penny from 1943
What are these guys building? Why are they doing it?
The Big Inch and Little Big Inch, collectively known as the Inch pipelines, are petroleum pipelines extending from Texas to New Jersey, built between 1942 and 1944 as emergency war measures in the U.S.
Franklin Roosevelt: “We must be the great arsenal of _________ “
Democracy
Nazi Air Minister Hermann Göring:
“Guns will make us powerful; butter will _____”
make us fat.
Consider the following diagram which shows the production possibilities curve in WWII. The point for 1945 is correctly located. Identify the point that best represents the economy in 1940.
A
