Chapter 13 - The Great Depression: Causes and Effects

These flashcards cover key concepts and events related to the Great Depression, focusing on the causes, effects, and governmental responses observed in both the US and Canada.

The US entered a mild recession due to __ monetary policy in 1928, leading to a decrease in construction and consumer spending.

tight

The __ is often seen as the start of the Great Depression, which lasted from 1929 to 1939 .

stock market crash

The dramatic drop in share prices on October 28, 1929, is referred to as __.

Black Monday

The collapse of banks led to __, where many savers rushed to withdraw their money, causing further bank bankruptcies.

bank runs

Canada was heavily dependent on exports, with __ products accounting for about 80% of its exports during the Depression.

farm, animal, and forest

High tariffs in Canada during the 1930s backfired because they reduced competition and led to a decrease in __ of exports.

variety

Canadians overextended their finances by buying on __, which became problematic when the stock market crashed.

credit

During the Depression, many farmers in Canada experienced __ due to low wheat prices and an oversaturated market.

bankruptcy

The Austrian School of Economists argue that the credit boom in the 1920s made a recession __.

inevitable

Keynes highlighted the lack of __ as a major issue during the Great Depression, arguing for government intervention.

aggregate demand

Monetarists believe that a significant decrease in the money supply during the Great Depression turned a normal recession into a __ depression.

deflationary

The Great Depression's severe unemployment in Canada, peaking at over __ by 1931, led to widespread poverty and declining living standards.

20%

Many governments, including Canada’s, initially responded to the crisis with __ rather than effective economic reform.

conservative policies

The Canadian government established the __ camps to provide relief for unemployed men during the Depression.

Unemployment Relief Scheme

Critics argued that the existence of relief camps allowed the government to manage and isolate unemployed men rather than providing __ employment and fair wages.

reasonable