Question

Which statement best explains how manufacturers contributed to the economic slowdown that led to the Great Depression?
They were overproducing goods.
They were not meeting consumer demands.
They were charging high prices for their products.
They were unable to pay back loans borrowed from banks.

Answer 1

They were overproducing goods.

Overproduction created large unsold inventories, causing factories to cut back production and lay off workers, which reduced incomes and consumer demand and helped trigger the economic downturn.