Business/Depression

Question 1

What is A on the business cycle?

Answer 1

waiting for a spark in the economy
SSI, BP, W down

Question 2

What is B on the business cycle?

Answer 2

hiring and production
BP up, SSI up, W up

Question 3

What is C on the business cycle?

Answer 3

peak and surplus
BP down, SSI up, W down

Question 4

What is D on the business cycle?

Answer 4

firing and cutting production
BP down, SSI down, W down

Question 5

What is E/A on the business cycle?

Answer 5

waiting for a spark in the economy again but this time you’re already at a decline
everything (BP, SSI, W) down again

Question 6

Business Cycle from WW1 to WW2

Answer 6

WW1 over - A, everything down
Post WW1, Pre Dep. - whole cycle run
Depression - E/A, every down and going downer
New Deal - B, everything briefly upwards
WW2 - C, the real start of recovery

Question 7

What are some causes of the depression?

Answer 7

• WW1 aftermath
• Rich and Poor gap
• Less jobs
• European Stability
• Americans not saving
• Dependency on credit
• Stock market crash

Question 8

Why did European Stability negatively impact the US economy?

Answer 8

Europe was not buying American products and therefore putting less money into our economy

Question 9

How did Less Jobs negatively impact the US economy?

Answer 9

Less jobs = less income = less purchases = business cutting production :(

Question 10

How did WW1 ending negatively impact the US economy?

Answer 10

No more wartime jobs so people would lose their jobs

Question 11

How did Easily Accessible Credit boost the US economy?

Answer 11

People made more purchases so increase of SSI then BP then W

Question 12

How did the wealth gap & distribution of the Rich and Poor negatively impact the US economy?

Answer 12

Too many people would be dependent on jobs and credit (since like 90% was poor) so they’ll be spending less meaning SSI down, BP down, W down

Question 13

When was the Stock Market Crash?

Answer 13

1929, October 28

Question 14

What was the New Deal and did it solve the Great Depression?

Answer 14

The Federal Government’s solution to the depression, it failed. The real solution was the aftermath of WW2 (Cold War) and the jobs it provided in science: space race and nuclear competitions.

Question 15

Data from the 20s the contributed to the Depression?

Answer 15

80% of Americans without savings
Gap between rich and poor (5% of workers earn 70% of nation’s income)
Credit creating fake prosperity
70% not earning what they need to survive
Banks not secure