Notebook Page 47

A situation in which more goods are produced than are demanded, leading to excess supply and price drops.

Overproduction

A decrease in the general price level of goods and services, often associated with reduced consumer demand.

Deflation

The practice of borrowing money to purchase stock, allowing investors to buy more shares than they could with their own capital.

Buying on margin

October 29, 1929, the day stock prices crashed, marking the beginning of the Great Depression.

Black Tuesday

The central bank of the United States, responsible for managing the country's monetary policy.

Federal Reserve

An economic theory proposed by John Keynes, advocating for government intervention to stimulate demand through public works projects and spending.

Keynesian Economics

A policy approach where the government intervenes directly in the economy to influence economic outcomes.

Interventionism

A series of programs and reforms introduced by Franklin Delano Roosevelt to respond to the Great Depression, aimed at providing relief, recovery, and reform.

New Deal

Germany's federal highway system, known for high-speed travel, which was developed under the Nazi regime as part of state-funded infrastructure projects.

Autobahn

Peaked at over 25% in 1933 as economic activity plummeted and jobs were lost.

Unemployment rate during the Great Depression