Economic Conditions Leading to the Great Depression

The economic conditions of the late 1920s that caused the Great Depression included:

• Overproduction and stock market speculation

• High government spending and low taxes

• Strong labor unions and high wages

• Balanced trade and stable currency

What was the Great Depression?

• A) A period of economic prosperity in the U.S. from 1929 to 1941

• B) A period of economic hard times for the U.S. from 1929 to 1941

• C) A war between the U.S. and Europe

• D) A time of technological advancement in the U.S.

Fill in the blank: The Great Depression was a period of economic hard times for the U.S. from ____ to _____

• 1929 to 1941

• 1914 to 1918

• 1945 to 1955

• 2001 to 2008

Based on the images, what was one major effect of the Great Depression on American families?

• Increased job opportunities

• Unemployment and need for free food

• More children attending school

• Growth in the entertainment industry

One cause of economic problems in America was that Americans began spending less and there was an ________ of goods. Fill in the blank.

• overproduction

• shortage

• scarcity

• deficit

Based on the images and the statement, what economic issue is being illustrated?

• Shortage of goods

• Overproduction of goods

• Increase in consumer spending

• Decrease in supply

In which year did the unemployment rate reach its highest point?

• 1933

• 1929

• 1940

• 1937

What was the approximate unemployment rate in 1931?

• 5%

• 10%

• 16%

• 25%

The photograph of people standing in a long line during the Great Depression suggests that:

• many people were struggling financially and seeking assistance

• there was a celebration happening

• people were waiting for a concert

• the economy was booming with plenty of jobs

According to the diagram, what do businesses do when consumers spend less?

• Increase wages

• Cut investment and production

• Hire more workers

• Lower prices