Name______Date______

The Causes and Effects of the Great Depression

  1. When the economy is at a high point, it’s called a ______.
  2. When the economy is at a low point, it’s a called a ______.
  3. The prosperous time after World War I was called the ______.
  4. The day the stock market crashed is known as ______.

Fill in the organizer with the correct information.

Cause / Effect
1. / Stock Market ______: ______/ Prices of stock ______
______
2. / ______/ -People borrowed______
______
-Loans could not be ______
______
-Workers were ______
3. /

Personal Debt

/ ______
______
4. /

Unwise Bank Practices

/ Banks invested ______
and ______
5. / Laissez-faire: ______
______/ People believed that ______
______
6. / Industrial
______/ -Companies ______more than they could ______.
-Businesses slowed ______or ______to get rid of extra.
7. / ______/ Other countries had difficulties ______
______
8. / Depressed Agricultural Production / -Droughts and ______caused prices to ______
-Farmers lost ______, and could not pay off ______or ______.

Why do you think people were unhappy with President Herbert Hoover during this time?

Answer the following questions.

  1. Which of the following illustrates the farming trends in Georgia after World War I?
  2. Farming alternate fields each year in order to keep the land fertile
  3. Overworking the land in order to keep up with demand
  4. Using lots of pesticides in order to rid the crops of insects
  5. Introducing machinery to replace workers
  6. Which of the following is not a result of the stock market crash in 1929?
  7. People were forced to sell their homes.
  8. Banks ran out of money.
  9. Savings accounts were emptied.
  10. Businesses increased production.
  11. An extreme low point in the economy is known as
  12. A peak.
  13. A trough.
  14. A depression.
  15. Inflation.
  16. Which of the following was NOT a result of unwise bank decisions?
  17. Loans couldn’t be repaid.
  18. People lost their jobs.
  19. Businesses made money.
  20. People borrowed too much money.
  21. How was industrial overproduction a cause of the Great Depression?
  22. Businesses made too much money.
  23. People had to borrow more money to pay for goods.
  24. Companies bought more products than they could sell.
  25. Other countries couldn’t buy goods.
  26. Which of the following was a cause of depressed agricultural production?
  27. Banks taking money from farmers.
  28. Farmers giving away too many crops.
  29. Loans to farmers put the farmers in debt.
  30. Prices of products declined and farmers lost money.
  31. What is the BEST description of the laissez-fair idea the government took on?
  32. The government should not interfere with the state of the economy, and should wait for the economy to fix itself.
  33. The government should intervene and create a solution for fixing the economy.
  34. The people should ask the government for loans to recover economically.
  35. Farmers should find more land to grow more crops on to fix the economy.
  36. Which of the following was NOT a result of the Great Depression?
  37. Slow economy
  38. Increased bank loans
  39. High unemployment
  40. Everyone suffering