Question

Explain two causes of great economic depression. State three consequences of the economic depression on Germany. long answer. 9th class history.​

Answer 1

Reduction in Purchasing Across the Board - With the stock market crash and the fears of further economic woes, individuals from all classes stopped purchasing items. This then led to a reduction in the number of items produced and thus a reduction in the workforce.1)In Germany by 1932 industrial output fell to 40% of the 1929 . 2) Workers lost their jobs and were paid reduced wages. Number of unemployed touched an unprecedented 8 million. 3) German investments and industrial recovery leading to economic stability between 1924-1928 was built on short termloans largely from USA.

Answer 2

Two causes of great economic depression

• Decision-making by the U.S. Federal Reserve that caused declines in the money supply
• Excessive stock-market speculation in the U.S. that resulted in the Great Crash of 1929
• Maintenance of the international gold standard

Three consequences of the economic depression on Germany are :-

1)In Germany by 1932 industrial output fell to 40% of the 1929 .

2) Workers lost their jobs and were paid reduced wages. Number of unemployed touched an unprecedented 8 million.

3) German investments and industrial recovery leading to economic stability between 1924-1928 was built on short termloans largely from USA. This support was withdrawn when the Wall Street Exchange crashed in USA in-1929.