Between the Wars Flashcards
world history
What does “economics” mean?
the study of a way a society gets their needs met through goods and services, usually using money
What’s the difference between a good and a service?
a good is something someone buys (i.e., hair dye) and a service is something someone does (i.e., hair cut)
What is inflation?
When the value of money goes down so the prices of goods and services go up
What is interest?
the fee someone (usually a bank) charges when they loan money to cover inflation
what happens to interest if inflation goes up?
interest goes up
What is the stock market?
a percentage of money that is invested into companies that is paid back later in the same percentage
What happens to someone’s profit if stock goes down?
they lose money
What is expiation?
a growing economy (like air going into a balloon)
What happens to an economy when there is an expiation?
low inflation, low unemployment, and rising wages
What is a recession?
a declining economy (like air going out of a balloon)
What happens to an economy when there is a recession?
high inflation, high unemployment, and falling wages
What is an economical depression?
a recession that happens over a long period of time
what happens during an economical depression?
companies don’t have money to hire people so nobody has money to buy goods and services so companies have to let even more people go and so on and so on
The _____ __________ was the worst global economic disaster
The Great Depression
What where 3 cases of the great depression?
WWI, the world depending on the US’ economy, and the stock market crash
What where some of the cause of WWI that also led to Great Depression?
WWI caused these things to happen
countries where left in debt, 60% of men (ages 18-40) where dead b/c of the war
Why was the world depending on the US before the great depression and after WWI?
nations needed to barrow money from the US during the war to make weapons and Germany needed money to pat reparations
The _____ ______ _____ of 1929 was one of the main leads to the Great Depression
stock market crash
What where some reasons that caused the Stock Market Crash of 1929
Supply went up and demand went down and deflation
What is deflation?
when people are selling things less then what they coast to make
what causes deflation?
lower profit leads to companies “letting people go” which leads to a lower profit because less people have money to buy their products
What where the impacts of the great depression?
major unemployment, socialist programs (Roosevelts new deal), communism, and fascism
What’s a Democracy?
where people have a choice in who leads
What’s an Authorities? Name two examples
Where people don’t have a choice in who leads, like communism and fascism
