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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too much money in circulation and high stock prices
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high employment and increased real estate investments
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large business investments and low taxes
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high unemployment and overproduction
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Detailed explanation-1: -High unemployment rates, devaluation of assets, increasing debt defaults and rising inflation are common signs of an economic depression. During the Great Depression, unemployment rates increased by over 25%, and the real GDP plummeted by 29%. An economic depression may share some characteristics with a recession.
Detailed explanation-2: -A depression is a severe and prolonged downturn in economic activity. A depression may be defined as an extreme recession that lasts three or more years or which leads to a decline in real gross domestic product (GDP) of at least 10% in a given year.
Detailed explanation-3: -Among the suggested causes of the Great Depression are: the stock market crash of 1929; the collapse of world trade due to the Smoot-Hawley Tariff; government policies; bank failures and panics; and the collapse of the money supply.
Detailed explanation-4: -The Causes of the Great Depression Overproduction: The 1920s witnessed a rapid economic expansion, as manufacturers made and sold new products like cars, radios, and refrigerators. Many consumers lacked the money to buy these goods. Manufacturers were soon producing more goods than they could sell.