(The spread of the Depression, 1929-1932) Collapse of GDP Flashcards
1
Q
How did the GDP change?
A
1929: $103.8 billion
1933: $56.2 billion
2
Q
What are three examples of economic downturns?
A
Farmers couldn’t afford to harvest crops
Increase in homelessness
Industrial production dropped by half
3
Q
What were the signs that the economy was slowing down?
A
Unemployment rising
Demand for goods decrease
Companies couldn’t sell abroad
4
Q
How is economic prosperity of the 20s linked to the economic downturn of the 30s?
(3)
A
People had more disposable income & invested in stocks when they stopped buying consumer goods.
Businesses overproduced to cut production so shares lost value - millions sold on ‘Black Tuesday’.
Businesses lost investment & cut jobs, creating high unemployment, investment & homelessness.
