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 ? descent WAS SPecultiave 1. The purchasing power of the people was maldistributed in a vestigial way. such a disparity in the incomes meant that the funds was come to 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 larnd throughout the decade and in filth of this, the factories produced to a greater extent goods than the consumers could purchase. (From exhibit1, we see that in 1925, the veritable consumption was 83.7 whereas the hearty taxation investment was 101.2 and in 1926, the real consumption was 90.5 whereas the real rough-cut investment was 105.6) Since, D/C 1.AGGREGATE DEMAND: THE golden shopworn AND WORLD MONEY SUPPLIES 2.Deflation and the Financial Sy stem 2) Why merchandise forces failed to create its equilibrium in the great depression of 1929 ? (Why eat up 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 cultivation 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 i t.Therefore,agriculture based economy (where! heap of GDP comes from agriculture depenedent on rainfall) cant be an economic power.If you consider to get a full essay, order it on our website: OrderCustomPaper.com

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