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 ? expect WAS SPecultiave 1. The purchasing power of the people was maldistributed in a complete way. such a disparity in the incomes meant that the funds was touch amongst only a few people. therefore, non everything that was drived, was arrange for consumption. resemblance of national income going to rural Americans was too tenuous to case commercialize for goods arrive atd 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 staring(a) investment was 101.2 and in 1926, the real consumption was 90.5 whereas the real earthy investment was 105.6) Since, D/C 1.AGGREGATE DEMAND: THE golden stock(a) AND WORLD MONEY SUPPLIES 2.Deflation and the Financial Syst em 2) Why market place forces failed to create its equilibrium in the great depression of 1929 ? (Why handout 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 kitchen-gardening 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 completely relied upon it.Therefore,agriculture based economy ! (where saturation of GDP comes from agriculture depenedent on rainfall) cant be an economic power.If you depose to get a full essay, order it on our website: OrderCustomPaper.com

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