THE GREAT DEPRESSION 1929 1940
PRESIDENT HERBERT HOOVER AND THE GREAT DEPRESSION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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could not pay their bills or debts to banks and caused businesses to close down
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sold all their belongings and traveled door to door throughout the north begging for money
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waited for the government to step in and help them out
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None of the above
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Detailed explanation-1: -Unemployment causes workers to suffer financial hardship that impacts families, relationships, and communities. When it happens, consumer spending, which is one of an economy’s key drivers of growth, goes down, leading to a recession or even a depression when left unaddressed.
Detailed explanation-2: -Cyclical unemployment can be caused by a recession, which is a period of negative economic growth. Cyclical unemployment can also be caused by downturns in a business cycle in which demand for goods and services decreases over time.
Detailed explanation-3: -Cyclical Unemployment During an economic downturn, a shortfall of demand for goods and services results in a lack of jobs being available for those who want to work. Businesses experiencing weaker demand might reduce the amount of people they employ by laying off existing workers, or hiring fewer new workers.
Detailed explanation-4: -Lower economic growth (GDP) – As fewer people have jobs, firms won’t be able to produce as many goods and services. As a result, the output of goods and services in the economy, GDP, will be lower. This also has an impact on government taxation and spending and will negatively affect their finances.