26. 1 The End of Prosperity

A set of vocabulary flashcards covering key terms related to the economic crises and events leading to the Great Depression.

Great Depression

A severe worldwide economic downturn that began in 1929 and lasted throughout the 1930s.

Black Tuesday

October 29, 1929; the day the stock market crashed, leading to the Great Depression.

Buying on margin

The practice of purchasing stocks with borrowed money to increase potential returns, which also increased financial risk.

Franklin D. Roosevelt

The 32nd President of the United States who led the country during the Great Depression with his New Deal programs.

Business cycle

The recurring pattern of expansion and contraction in economic activity.

Bonus Army

A group of World War I veterans who marched on Washington, D.C. in 1932 to demand early payment of a military bonus.

Panic

A sudden period of intense fear among investors leading to a rapid sell-off of stocks, which contributed to market crashes.

Unemployment

The situation when individuals who are capable of working are unable to find a job.

Economic Recession

A significant decline in economic activity across the economy lasting longer than a few months, often shown by GDP decline.

Overproduction

When production of goods exceeds the demand for them, often leading to unsold inventories and business failures.