Answer:
Great depression was the severest downturn of the economy .It lasted for more than 10 years .There was fall in the economy as a whole.There was fall in industrial production,prices,unemployment ,rise in poverty and fall in the performance of banks.
Explanation:
Causes of Great Depression:
- Stock market crash of 1929:it was one of the major causes that lead to great depression
- Bank failures:9000 banks failed and people lost their savings
- Reduction in purchasing:With the crash in the stock market people got scared and their purchasing power reduced a lot.
- Reduction in production :Less purchasing power of people had a great impact on production.
- American economic policies with Europe:In order to protect American companies ,new policies were introduced a high tax was charged on imports which reduces trade with other countries.
- Drought:In 1930 drought occurred in Mississippi.Due to which people were not able to pay the taxes and they had to sell their farms.
