Great Depression

http://www.slideshare.net/smthktt/wall-steet-crash-and-depression 1) How do you relate macro-economic during the period of Great depression ? communication channel WAS SPecultiave 1. The purchasing power of the people was maldistributed in a organic way. such a disparity in the incomes meant that the funds was center on amongst only a few people. therefore, non everything that was drived, was arrange for consumption. balance of national income going to rural Americans was too tenuous to encase commercialize for goods maintaind throughout the decade and in filth of this, the factories produced more(prenominal) goods than the consumers could purchase. (From exhibit1, we see that in 1925, the veritable consumption was 83.7 whereas the hearty consummate(a) investment was 101.2 and in 1926, the real consumption was 90.5 whereas the real realize investment was 105.6) Since, D/C 1.AGGREGATE DEMAND: THE golden standardised AND WORLD MONEY SUPPLIES 2.Deflation and the Financial System 2) Why food market forces failed to create its equilibrium in the great depression of 1929 ? (Why release failed to create its own demand in great depression).

2> demands was not studied. and the production went on happening assuming that it would be consumed by the market.the sign was understood properly and hence the equilibrium in the great depression of 1929. 3) Why cant an horticulture based economy be an economic power (Indian context)? 3> Indian agriculutue is heavily depnedent on the rainfall for irrigation. Rainfall being erratic, the agriculturual produce cant be c ompletely relied upon it.Therefore,agricultu! re based economy (where mass of GDP comes from agriculture depenedent on rainfall) cant be an economic power.If you affirm to get a full essay, order it on our website: OrderCustomPaper.com

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