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Causes of the Great Depression

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The Great Depression was a period of prolonged economic suffering that began in 1929, after the end of nearly a decade of prosperity in the 1920s. Many factors contributed to the initial economic downturn, called a

recession,

that eventually grew into the Great Depression.

Sort the following statements by whether they describe good economic times, like much of the 1920s, or bad economic times, like the Great Depression.

People have extra money to buy luxuries, like cars and appliances.

The value of the stock market is high because businesses are worth a lot of money.

People don't have the money to buy many goods, so prices are low and businesses can't make a profit.

People can easily find jobs because there is lots of demand to produce goods and services.

People can't afford to pay back the debts that they owe, so they lose their homes.

Unemployment is high because there are few jobs available.

Life during good economic times

Life during bad economic times

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