Question

analyes the causes of decline in demand and fall in prices that led to the economi depression​

Answer 1

Answer:

An economic depression is primarily caused by worsening consumer confidence that leads to a decrease in demand, eventually resulting in companies going out of business. When consumers stop buying products and paying for services, companies need to make budget cuts, including employing fewer worker.

Answer 2

Explanation:

An economic depression is an occurrence wherein an economy is in a state of financial turmoil, often the result of a period of negative activity based on the country’s Gross Domestic Product (GDP) rate. It is a lot worse than a recession, with GDP falling significantly, and usually lasts for many years. In the US, the Great Depression lasted for a decade, with the unemployment rate reaching 25% and wages falling by 42%.