What is Economic Depression?

Transcript

It is a period of sustained long term downturn in economic activities Example Great Depression of 1929 Economic Depression Economic Activities Decline or Downturn Economic Depression Is Decline in Economic Activities over long period of time Examples Describe the Great Depression of 1929 Great Depression occurred in economies of North America and Europe It occurred during period from 1929 to 1939 During this period, there was Low demand of Product Because of low demand, there was low output and employment levels There was very high unemployment rate Stock market crashed Many people went bankrupt Positive Effect It lead to the study of Macroeconomics as a separate branch of economics Main contribution in this regard was by John Maynard Keynes He published his book on Macroeconomics called ' The General Theory of Employment, Interest and Money in 1936' during this period Causes of The Great Depression Of 1929 Low Demand of Product Low Output (Less goods Manufactured) Low Employment Levels (Less people Employed , Less Resources Used) People cut expenses Purchase less goods and Services Low Income of People No Money to Afford Different Expenses When Occurred Between 1929 to 1929 Where Occurred North America & Europe Any Positive Effect? Led to Study of Macroeconomics By John Maynard Keynes NCERT Questions Q4 Describe the Great Depression of 1929. Ans It is a period of sustained long term downturn in economic activities Example: Great Depression of 1929 Great Depression occurred in economies of North America and Europe. It occurred during period from 1929 to 1939. During this period, there was Low demand of Product across these regions Because of low demand, the output and employment levels were also low As a result, there was very high unemployment rate Also stock market crashed and many people became bankrupt. However there was a also a Positive effect of the Great Depression- It lead to the study of Macroeconomics as a separate branch of economics Main contribution in this regard was by John Maynard keynes He published his book on Macroeconomics called ' The General Theory of Employment, Interest and Money in 1936' during this period Other Books No more questions