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Questions and Answers
What were some of the causes of the economic downturn in 1929?
What happened to workers when businesses needed to lay off employees?
How did the reduction in consumer demand impact the economy?
Study Notes
The Great Depression
- 1929: The Great Depression was partly sparked by the stock market crash that began on "Black Tuesday," October 29.
- In the months leading up to the crash, stock prices were pushed higher and higher in a speculative frenzy, nearly doubling in value in just a year and a half.
- On Black Tuesday, panic rocked the stock market as stock prices plummeted, and continued to fall in the following months.
Stock Market Crash
- It wasn't until 1932 that the stock market hit bottom, with many stocks losing 90% of their value.
- Example: General Motors shares dropped from $73 to $8 per share between 1929 and 1932.
Economic Impact
- The stock market crash bankrupted many individual investors and collapsed corporate wealth.
- The broader American economy collapsed, with the U.S. economy shrinking by more than a third from 1929 to 1933, as measured by GDP (gross domestic product).
- Definition: GDP is the value of all goods and services produced in one country during a specific period, usually a year or part of a year.
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Description
Test your knowledge about the Great Depression and the New Deal programs with this quiz. Learn about the causes and effects of the Great Depression, as well as the impact of the New Deal initiatives on the American economy.
