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 ? banal WAS SPecultiave 1. The purchasing power of the people was maldistributed in a extreme way. such a disparity in the incomes meant that the funds was revolve about amongst only a few people. therefore, not everything that was drived, was arrange for consumption. equipoise of national income going to rural Americans was too tenuous to crateful commercialize for goods ca-cad 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 common 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 stock(a) AND WORLD MONEY SUPPLIES 2.Deflation and the Financial S ystem 2) Why food market forces failed to create its equilibrium in the great depression of 1929 ? (Why run 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 husbandry 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 slew of GDP comes from agriculture depenedent on rainfall) cant be an economic power.If you charge to get a full essay, order it on our website: OrderCustomPaper.com

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