Causes of the Great Depression

Match

Match the following based on pre-reading

• Overproduction

• Underconsumption

• Stock market speculation

• Black Tuesday

• Great Depression

Goods made exceed sales.

People spend less due to lower income.

Buying stocks with loans.

The day the stock market crashed in 1929

A decade-long economic downturn

• Goods made exceed sales.

• People spend less due to lower income.

• Buying stocks with loans.

• The day the stock market crashed in 1929

• A decade-long economic downturn

Multiple Choice

What was the Great Depression?

• A period of economic success and an improving economy

• The worst economic catastrophe in U.S. history

• A period of time that witnessed American involvement in violent foreign wars

• A hotly contested presidential election

Multiple Choice

How did the transition to mechanized farming contribute to economic challenges in the agricultural sector?

• Mechanized farming led to overproduction and lower prices for agricultural products, causing economic challenges for farmers.
• Mechanized farming reduced the cost of production, improving the economic situation in the agricultural sector.
• Mechanized farming had no impact on the economic challenges faced by farmers in the agricultural sector.
• Mechanized farming resulted in increased demand for agricultural products, leading to economic challenges for farmers.

Multiple Choice

How did the decline in consumer purchasing powern affect the economy?

• The decline in consumer purchasing power increases demand for goods and services
• The decline in consumer purchasing power has no impact on the economy
• Reduced consumer spending resulted in decreased revenue for farmers and business owners, leading to layoffs and a rise in bankruptcy filings.

• The decline in consumer purchasing power only affects individual consumers, not the overall economy

Multiple Choice

What forced banks to close during the Great Depression?

• Huge amounts of inflation

• War in Europe

• Investors unable to pay loans and bank runs

• Not enough people invested in the Stock Market

Categorize

Options (12)

Too many crops, not enough demand

More products than people want.

Manufacturers make too much; prices fall.

People earn less, buy less.

"First, everyone spends a lot; then, not so much.

People borrow money to gamble on stocks.

Companies aren't worth their stock prices.

Everyone tries to sell stocks; prices crash

Banks fail when loans aren't paid back

After the stock market crash, banks demand their money

Savings wiped out.

Wages fall, spending drops

Organize these options into the right categories

Overproduction

Underconsumption

Stock Market Speculation

Bank Failures

Reorder

Use the image to guide your answer. Reorder these events.

• unemployment rates increase

• people do not have any money for food

• widespread business failtures

1

2

3

• 1
• 2
• 3

Multiple Choice

What was an immediate economic consequence of the 1929 stock market crash?

• Bank failures and a spike in unemployment.

• Government reforms stabilized the market quickly.

• Increased global investment in U.S. stocks.

• Decrease in unemployment rates