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Zorluk: KolayCauses of the Great Depression

Read the excerpt below and answer the question that follows.

"In the years 19221922 to 19291929, the physical volume of production increased by nearly 50%50\%... But during the same period, the number of employees in factories actually decreased, and aggregate payrolls rose only moderately. The growth of consumer demand did not match the rapidly expanding output of our industrial system."
— Committee on Recent Economic Changes, *Recent Economic Changes in the United States*, 19291929

Which of the following problems in the United States economy during the 19201920 s is most directly illustrated by this excerpt?

  1. A
    The immediate failure of New Deal relief programs to restore factory employment levels
  2. B
    The collapse of domestic markets resulting from absolute isolationist policies that prohibited all international trade
  3. The growing imbalance between high industrial productivity and limited consumer purchasing powerCevap
  4. D
    The negative effects of strict federal price controls and wage-minimum laws on factory production

Cevap

The growing imbalance between high industrial productivity and limited consumer purchasing power
The excerpt highlights that while industrial production rose by nearly 50%50\% during the 19201920 s, workers' wages and employment did not rise at the same rate. This led to a situation where consumers could not afford to purchase the large volume of goods being produced, causing an unstable economic cycle of overproduction and underconsumption.

Adım Adım Çözüm

1
Analyze the stimulus text to identify the economic trends described.
The text states that industrial production increased by nearly 50%50\%, but factory employment fell and payrolls rose only moderately, leading to consumer demand lagging behind production.
This establishes the core historical evidence of a gap between supply and demand during the 19201920 s.
2
Connect these trends to the historical causes of the Great Depression.
A gap between high production and stagnant wages leads to underconsumption, where consumers cannot afford to buy the goods being produced.
This links the specific trends in the stimulus to the broader economic concept of overproduction and underconsumption.
3
Evaluate the choices to find the one that matches this economic imbalance.
The statement referencing the imbalance between productivity and purchasing power directly matches the text's description of production outstripping wage growth and consumer demand.
This identifies the correct answer based on historical accuracy and direct textual evidence.

Anahtar Kavram

Underconsumption and overproduction as causes of the Great Depression
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Causes of the Great Depression

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