Explain the boom-and-bust cycle of the great depression.

Answer 1

The boom-and-bust cycle of the Great Depression was a period of economic contraction and expansion that occurred in the United States during the 1930s. The boom-and-bust cycle began with a period of economic expansion in the late 1920s, followed by a period of economic contraction in the early 1930s. During the expansion, businesses and consumers borrowed heavily to finance investments and purchases, leading to an unsustainable level of debt. When the economy began to contract, businesses and consumers were unable to pay back their debts, leading to a wave of bankruptcies and foreclosures. This caused a further contraction in the economy, leading to a downward spiral of economic activity. The Great Depression was the most severe economic downturn in the history of the United States, and it lasted until the early 1940s.

Answer 2

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