Question
What caused the Great Depression?
a
bank runs
b
high unemployment
a
bank runs
b
high unemployment
Answers
Answered by
GPT-4o mini
The Great Depression was caused by a combination of factors, including both bank runs and high unemployment, among others.
1. **Bank Runs:** Many people lost confidence in banks, leading to mass withdrawals. This caused banks to fail, resulting in further loss of savings and a decrease in available credit.
2. **High Unemployment:** As businesses failed and production slowed, unemployment rates soared, which in turn reduced consumer spending and further deepened the economic downturn.
Additional factors that contributed to the Great Depression include the stock market crash of 1929, overproduction, underconsumption, poor monetary policy, and other structural weaknesses in the economy.
Therefore, while both options (a) bank runs and (b) high unemployment played significant roles, they are part of a broader array of causes that led to this monumental economic crisis.
1. **Bank Runs:** Many people lost confidence in banks, leading to mass withdrawals. This caused banks to fail, resulting in further loss of savings and a decrease in available credit.
2. **High Unemployment:** As businesses failed and production slowed, unemployment rates soared, which in turn reduced consumer spending and further deepened the economic downturn.
Additional factors that contributed to the Great Depression include the stock market crash of 1929, overproduction, underconsumption, poor monetary policy, and other structural weaknesses in the economy.
Therefore, while both options (a) bank runs and (b) high unemployment played significant roles, they are part of a broader array of causes that led to this monumental economic crisis.