Overview
Crisis economics examines how economies react to severe downturns, with the Great Depression serving as a pivotal case study. The Great Depression, which began in 1929, was marked by massive unemployment, bank failures, and a significant drop in consumer spending. Understanding the causes and conseq...
Key Terms
Example: The economy entered a recession after the stock market crash.
Example: Increased government spending can stimulate economic growth.
Example: Lowering interest rates can encourage borrowing and investment.
Example: Deflation occurred during the Great Depression, leading to lower consumer spending.
Example: The unemployment rate soared to 25% during the Great Depression.
Example: Bank runs contributed to the collapse of many banks in the 1930s.