Answers -This is a skeleton vocab list. You should add to this in order to
study for the exam with
Inflation✔️✔️a general increase in prices and fall in the purchasing value of money.
Deflation✔️✔️a decrease in the general level of prices
CPI (Consumer Price Index)✔️✔️a measure of the overall cost of the goods and services bought
by a typical consumer
Real GDP✔️✔️the production of goods and services valued at constant prices
Nominal GDP✔️✔️the production of goods and services valued at current prices
unemployment rate✔️✔️the percentage of the labor force that is unemployed
The Federal Reserve✔️✔️the central bank of the United States
Tariff✔️✔️A tax on imported goods
Stock Market✔️✔️A system for buying and selling shares of companies
Great Depression✔️✔️A time of utter economic disaster; started in the United States in 1929.
localism✔️✔️policy relied on by President Hoover in the early years of the Great Depression
whereby local and state governments act as primary agents of economic relief
, Trickle Down Economics✔️✔️Hoover's strategy battling the Great Depression in which the
money is given to the big corporations and eventually they will pay their workers more, and then
the workers will spend their money and save the economy.
Hoover Dam✔️✔️huge public works project on the Colorado River that provided jobs, water for
irrigation, and power
Bonus Army✔️✔️1932 - Facing the financial crisis of the Depression, WW I veterans tried to
pressure Congress to pay them their retirement bonuses early. Congress considered a bill
authorizing immediate assurance of $2.4 billion, but it was not approved. Angry veterans
marched on Washington, D.C., and Hoover called in the army to get the veterans removed
Herbert Hoover✔️✔️31st President of the United States - need to know responses to the Great
Depression
Franklin D. Roosevelt (FDR)✔️✔️Franklin D Roosevelt took office as president of the United
States. He started his presidency off with the First Hundred Days, which was the beginning of
the New Deal. During this period, FDR and congress passed hundreds of bills that promoted
social welfare and initiated programs coined alphabet soup programs.
Fireside Chats✔️✔️informal talks given by FDR over the radio; gained the confidence of the
people
FDIC (Federal Deposit Insurance Corporation)✔️✔️the government agency that insures
customers' deposits if a bank fails
CCC (Civilian Conservation Corps)✔️✔️relief that provided work for young men 18-25 years old
in food control, planting, flood work, etc.
NRA (National Recovery Administration)✔️✔️New Deal agency that promoted economic
recovery by regulating production, prices, and wages