Podcast
Questions and Answers
Which situation exemplifies a core characteristic of an economic depression?
Which situation exemplifies a core characteristic of an economic depression?
- Rising value of goods and services coupled with stable employment
- A rapid increase in employment rates across all sectors
- Increased consumer spending due to higher wages
- Falling prices and reduced productivity across the economy (correct)
What was a significant factor that contributed to the overproduction problem in the late 1920s?
What was a significant factor that contributed to the overproduction problem in the late 1920s?
- Decreased productivity levels in key industries
- Increased government regulation on production quotas
- The United States being a very productive country (correct)
- A decline in available resources for manufacturing
How did the expectations of 'prosperity forever' influence people's behavior during the late 1920s?
How did the expectations of 'prosperity forever' influence people's behavior during the late 1920s?
- It led to cautious investment strategies and reduced spending
- It caused widespread concern about potential economic downturns
- It encouraged increased investment and risk-taking in the stock market (correct)
- It promoted a focus on saving and financial security
How did the value of General Motors stock respond during the stock market downturn?
How did the value of General Motors stock respond during the stock market downturn?
In what way did people's investment strategies in the stock market contribute to the conditions leading up to the crash?
In what way did people's investment strategies in the stock market contribute to the conditions leading up to the crash?
Besides economic factors, what often accompanied the Great Depression?
Besides economic factors, what often accompanied the Great Depression?
What was the general sentiment in the U.S. during the 1920s before the Great Depression?
What was the general sentiment in the U.S. during the 1920s before the Great Depression?
Why did people begin to sell their stocks leading up to the crash?
Why did people begin to sell their stocks leading up to the crash?
How did the stock market crash in October 1929 serve as a sign of broader economic troubles?
How did the stock market crash in October 1929 serve as a sign of broader economic troubles?
What was the time period of the Great Depression?
What was the time period of the Great Depression?
Flashcards
Economic Depression Definition
Economic Depression Definition
An economic downturn characterized by falling prices, falling wages, reduced employment rates, reduced productivity, and declining value of goods and services.
Great Depression
Great Depression
Refers to the global economic crisis lasting from 1929 to 1939, marked by widespread poverty and unemployment.
Overproduction in the Late 1920s
Overproduction in the Late 1920s
Late 1920s: Overproduction became a problem for a very productive country.
"The Crash"
"The Crash"
Began in October 1929 and signaled the start of the downward spiral.
Signup and view all the flashcards
Stock Market Investments
Stock Market Investments
People invested in stocks expecting to share in a company's success. They took out loans to invest, which became a form of gambling.
Signup and view all the flashcards
Stock Value Inflation
Stock Value Inflation
In late 1929, stock values were highly inflated. When people started selling, prices crashed.
Signup and view all the flashcards
Stock Investments
Stock Investments
People wanted to be a part of the success of the company
Signup and view all the flashcardsStudy Notes
-
Economic Depression
-
Defined by:
- Falling prices
- Falling wages
- Falling rates of employment
- Reduced productivity
- Declining value of goods and services
- Often accompanied by emotional depression
-
Great Depression: 1929-1939
- Global depression
- Widespread poverty
- Many people affected
- Many in need of jobs
-
1920s:
- Good time to live in the U.S.
- High productivity
- Abundance of resources
- BUT: (Late 1920s) overproduction was problematic for a very productive country
- Expectations of late 1920s did not match the problems
- "Prosperity forever": what people expected to come out of the 1920s
-
Symbol of depression: October 1929, "The Crash"
- The start of it all, a sign that people were headed downward
-
Why the crash??:
- Stock: People would invest because they wanted to be a part of the success of a company
- Stocks would go up in value (investments to make money)
- People would take out loans to invest in stocks
- Becomes like gambling
- By 1929, the value of stocks was so inflated, that people began to sell
- During the crash, people began to sell their stocks at the same time
- Example:
- General Motors stock was selling for $72 per share
- The price went down by 10% or 15%
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
