Question

Identify the differences between the United States experiences during the Great Depression and the financial crisis of 2007-2009 (Check all that apply).A. Unemployment was a larger factor during the recent financial crisis with only minor implications during the Great Depression.B. The source of asset-price increases was different for both episodes.C. The recent crisis resulted in more siginificant declines in GDP than the Great Depression.D. No bank panic occurred in 2007-2009 as opposed to the Great Depression.E. The Banking system was not hit as hard during the Great Depression as it was during the 2007-2009 financial crisis.

Answer 1

Answer: The correct options are;

Option C

Option E :

Explanation:

The recent crisis led to more debt to GDP ratio jumped from 69% in 2008 to 79% in 2009. This level is higher than the maximum in the Great Depression and the increase in percentage points over two years is the same as that over six years during the great depression

Also,

The banking system was not hit hard during the great depression because the central banks of different countries were less coordinated, had different

objectives and policy instruments and some countries still had obligations and/or debts from

World War I. All countries had separate currencies, and lenders of last resort did not exist to

the extent they do today.

According to a discussion paper titled "The Great Recession versus the Great Depression: Stylized Facts on Siblings That Were Given

Different Foster Parents".