Causes & Consquences of the Depression

Causes

100

1929 in USA

When was the Great Depression started and where?

200

The word "depression" in economics means a severe recession. It is called "great" only in the sense that it was very brutal on many people around the world. There was high unemployment; many companies and banks went out of business. Recessions are part of the normal business cycle.

Why was it called "The Great Depression"?

300

October 29th, 1929: the day when prices in the stock market took a steep dive, plunging over $10 million dollars.

What was the "Black Tuesday"?

400

SLUMP-a period when output slows down due to a reduction in demand. BOOM-a time of fast economic growth.

Define a stock market "slump" and "boom".

500

1. Overproduction and underconsumption 2. Uneven distribution of income 3. Stock market speculation 4. Buying on margin 5. Excessive use of credit

What were the major causes of the Great Depression?

Consequences

100

The answer is "e- a and c only".

Choose the best answer for the following question. From 1929 to 1933: a. the unemployment rate was increasing. b. the economy was experiencing inflation. c. Gross Domestic Product (GDP) was decreasing. d. the Consumer Price Index (CPI) was increasing. e. a and c only.

200

False. There were more women woking.

True of False There were fewer women working during the Depression.

300

e. a and c only

Choose the best answer for the following question: Which of the following statements regarding deflation is true? a. It causes people to postpone purchases. b. It robs the purchasing power of people’s savings. c. It causes a decline in prices and demand for goods and services. d. a and b only e. a and c only

400

Many people lost their jobs; the unemployment rate was rising because of the depression. The number of homeless was increasing. Many banks also closed because of the depression and a lot of money was lost.

How bad was the overall depression? What were the economic effects of this crisis?

500

The great Depression was the cause for WWII. After WWI, Germany and Italy had a huge compensation to make. While WWI cost lots of money and sources, German had no money that could fully pay for those compensation. Later the Depression was going on and it gave a strong impact on Germany's economy. Germany had to start a war to take money, sources or other things that Germans really needed. They went on the war to reduce the pressure of economy.

How were the Great Depression related to Second World War?

Depression in Canada

100

R.B. Bennett.

Who was the prime minister during the great depression?

200

1. Cooperative Commonwealth Federation (CCF) now New Democratic Party 2. Social Credit Party

Which two political parties were formed during the Depression but now did not exist.

300

It was a speech by Mackenzie King that he said it was provincial and municipal government's job to deal with the Depression and he would not give out any money. His attitude convinced people that King did not care about their suffering. In 1930, R.B. Bennett, leader of the Conservatives, took over as Prime Minister.

What was "Five Cent Speech"? Who gave this speech and how did the speech effect society at that time?

400

Social Credit was based on the belief that capitalism was a wasteful economic system because under capitalism, banks hoarded money, preventing customers from buying the abundant goods that capitalism produced. Social Credit Party thought the best way to ease Depression was giving out money to citizens. William Aberhart promised each citizen a "basic dividend" of $25 a month to buy necessities.

What policy did the Social Credit Party have during the Depression?

500

1. Bennett's government gave the provinces $20 million for work-creation programs, but the economy did not improve. 2. He imposed high tariffs (taxes) by 50% on imported goods, hoping it would save Canadian industries. Even Bennett’s New Deal, an elaborate plan to provide help for people in need, did not make things any better. The situation grew worse, Bennett became a target for people's anger and frustration.

What was "the New Deal" by R.B Bennett and how did it change the situation that Canadians were facing?