which was the period of economic depression? Write 3 effects of that.
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Answers
the period when wall street exchange crashed in USA was known as economic DEPRESSION
EFFECTS OF ECONOMIC DEPRESSION:
- 13 MILLION SHARES WERE SOLD AND OVER 3 YEARS BETWEEN 1929 TO 1932 USA NATIONAL INCOME FELL BY HALF.
- FACTORIES SHUT DOWN AND EXPORTS FELL
- FARMERS WERE BADLY HIT , IT HAS EFFECTS WORLDWIDE. GERMAN ECONOMY WAS ALSO HIT BY THIS CRISIS.
In economics, a depression is a sustained, long-term downturn in economic activity in one or more economies. It is a more severe economic downturn than a recession, which is a slowdown in economic activity over the course of a normal business cycle.
A depression is an unusual and extreme form of recession. Depressions are characterized by their length, by abnormally large increases in unemployment, falls in the availability of credit (often due to some form of banking or financial crisis), shrinking output as buyers dry up and suppliers cut back on production and investment, large number of bankruptcies including sovereign debt defaults, significantly reduced amounts of trade and commerce (especially international trade), as well as highly volatile relative currency value fluctuations (often due to currency devaluations). Price deflation, financial crises and bank failures are also common elements of a depression that do not normally occur during a recession.
It was from 29 October 1929-39.
The Great Depression was a worldwide economic depression that lasted 10 years. It began on “Black Thursday," October 24, 1929. Over the next four days, stock prices fell 23 percent in the stock market crash of 1929. The stock market had been troubled well before October, however; in August of 1929, stocks were overvalued despite rising unemployment and declining production. As such, many people consider this the true starting point of the Great Depression.
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