Question

what is meant by Great Depression write any two causes of it

Answer 1

The causes of the Great Depression were
(i) Conditions created by war There was an immense industrial expansion due to the increased demand of goods supplied to the army, during the period of the First World War. After the war, the demand for these goods suddenly dropped and so, there was no demand in many industries. There was also a large fall in the agricultural prices due to reduced demand.
(ii) Over production in agriculture Agricultural over production was another major factor responsible for the depression. This was made worse by falling agricultural .prices. As prices slumped and agricultural incomes declined, the farmers tried to increase the production and bring a larger volume of produce to the market to maintain their overall income. This worsened the situation by pushing down the prices of farm produce further.
(iii) Shortage of loans In the mid-1920s, many countries financed their investments through loans from the USA. While it was often very easy to raise loans in the USA during the boom period, lenders in the USA panicked at the first sign of trouble. Countries that depend crucially on US loans, now faced an acute crisis.
(iv) Multiple effect With the fall in prices and the prospect of a depression i.e. banks in the USA slashed domestic lending and some stopped bank loans, thousands of banks went bankrupt and were forced to close down. Factories closed, leading to unemployment, which further aggravated the crises. The US banking system collapsed.
(v) Large-scale unemployment Farm could not sell their harvests, businesses collapsed. As a result, large scale unemployment occurred.

Answer 2

$\Large{\textbf{\underline{\underline{Following\:points\:are:-}}}}$

Great depression was faced during 1929 to 1930. This is hazardous condition for the people as per the most part of the world get effect by the decrease of employment , production and also in income.

Mostly the sector of agriculture and the community was effected which is not good by the livelihoods.

$\Large{\textbf{\underline{\underline{Cause:-}}}}$

1. As because of post world war the economy of the world were delicate. Due to this the price of goods increased and the production gets slow up

2. Mostly many countries taken loan from the government of US (United States)