Economic Crisis

Question 1

When was the economic crisis?

Answer 1

1781-87

Question 2

Name three causes of be economic crisis

Answer 2

• The American War of Independence
• Royal Family’s overspending
• Bad Harvest

Question 3

How did the American War of Independence contribute to the financial crisis?

Answer 3

It indulged France further into debt as the war posed no benefit but to feed Louis’ ego which led to France’s well needed money being wasted on unnecessary measures

Question 4

How did the Royal Family’s overspending contribute to the economic crisis?

Answer 4

Because they continued to live like France was normal which led to France’s finance declining for the Royal Family’s temporary pleasure

Question 5

How did the Bad Harvests contribute to the economic crisis?

Answer 5

Because there were less goods so the prices went up massively, leaving the majority of France in starvation

Question 6

How much of their wage did a worker originally spend on bread?

Answer 6

50%

Question 7

How much of their wage did a worker spend on bread during the economic crisis?

Answer 7

88%

Question 8

How did rising bread prices effect other industries?

Answer 8

It caused their profits to decline as the majority of a workers wage was being spent on bread so they had little money to spare on other goods