Question

how far could overproduction be blamed for the end of the economic boom? Explain your answer

Answer 1

Answer:

Continued overproduction can be blamed for the end of economic. This is one of the key lessons drawn after the post war period. Actually during the First World War (1914-1918), USA supplied the war waging countries with war related goods. This increased the production of the country. Thus overproduction and mass production started. When the war gor over, in order to maintain the income as the inter-war period, producers continued their over production. This led to decline in income and a situation of glut in the market. Continued situation of this led to the great economic depression.