Question
How did overproduction affect businesses in the 1920s? Check all that apply.
Businesses cut production.
Workers were laid off.
Demand increased.
Businesses closed.
Banks lowered rates.
Businesses cut production.
Workers were laid off.
Demand increased.
Businesses closed.
Banks lowered rates.
Answers
GPT-4o mini
Overproduction in the 1920s had several negative effects on businesses. Here are the applicable outcomes:
- **Businesses cut production.**
- **Workers were laid off.**
- **Businesses closed.**
The increased production without a corresponding increase in consumer demand led to surpluses, which caused these businesses to make adjustments. While demand did not increase in the same way production did, banks lowering rates is less directly tied to overproduction itself, although it might have been a response to the subsequent economic challenges.
- **Businesses cut production.**
- **Workers were laid off.**
- **Businesses closed.**
The increased production without a corresponding increase in consumer demand led to surpluses, which caused these businesses to make adjustments. While demand did not increase in the same way production did, banks lowering rates is less directly tied to overproduction itself, although it might have been a response to the subsequent economic challenges.