THE GREAT DEPRESSION 1929 1940
THE GREAT DEPRESSION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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An increase in defense spending would stimulate the economy
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Unemployed workers should receive federal welfare payments
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The economy would recover on its own
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The use deficit spending to stimulate the economy
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Detailed explanation-1: -The Great Depression was the worst economic downturn in the history of the industrialized world, lasting from 1929 to 1939. It began after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors.
Detailed explanation-2: -Roosevelt took office, stabilized the banking system, and abandoned the gold standard. These actions freed the Federal Reserve to expand the money supply, which slowed the downward spiral of price deflation and began a long slow crawl to economic recovery. The Great Depression finally ended in the early 1940s.
Detailed explanation-3: -But economists and historians generally agree that there were several mitigating factors that led to this period of downturn. These include the stock market crash of 1929, the gold standard, a drop in lending and tariffs, as well as banking panics, and contracted monetary policies by the Fed.
Detailed explanation-4: -The United States is generally thought to have fully recovered from the Great Depression by about 1939. Great Depression, worldwide economic downturn that began in 1929 and lasted until about 1939.