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during the 1920s the united states economy moved through which phase of the business cycle

Radhe by Radhe
November 29, 2021
Reading Time:3min read
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business cycle

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This is true. It’s also important to realize that the US economy is quite dynamic.

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This is true. It’s also important to realize that the US economy is quite dynamic.During the 1920s the US economy was a stage of the business cycle. This had a positive outcome on the way to the Great Depression, but the 1929 recession proved that the cycle was not static.

This is true. It’s also important to realize that the US economy is quite dynamic.During the 1920s the US economy was a stage of the business cycle. This had a positive outcome on the way to the Great Depression, but the 1929 recession proved that the cycle was not static.The Great Depression was caused by a lack of investment that created the need for ever more credit from the banks (which made it harder to get loans for factories to buy). As a result, businesses went bankrupt (and started to grow) and the cycle began again. The 1930s saw the start of the “second” business cycle, which saw a downturn in industrial production and the eventual collapse of the US economy.

This is true. It’s also important to realize that the US economy is quite dynamic.During the 1920s the US economy was a stage of the business cycle. This had a positive outcome on the way to the Great Depression, but the 1929 recession proved that the cycle was not static.The Great Depression was caused by a lack of investment that created the need for ever more credit from the banks (which made it harder to get loans for factories to buy). As a result, businesses went bankrupt (and started to grow) and the cycle began again. The 1930s saw the start of the “second” business cycle, which saw a downturn in industrial production and the eventual collapse of the US economy.This time of the business cycle saw the US economy get so weak that the US became unprofitable. It took a combination of the Depression and the Great Recession to get the economy back on track. In the 1920s the United States was very dependent on foreign trade and the economy was dependent on the value of US currency. So the combination of the depression and the Great Recession made it quite difficult for the US to get foreign currency and make up for it with domestic demand.

This is true. It’s also important to realize that the US economy is quite dynamic.During the 1920s the US economy was a stage of the business cycle. This had a positive outcome on the way to the Great Depression, but the 1929 recession proved that the cycle was not static.The Great Depression was caused by a lack of investment that created the need for ever more credit from the banks (which made it harder to get loans for factories to buy). As a result, businesses went bankrupt (and started to grow) and the cycle began again. The 1930s saw the start of the “second” business cycle, which saw a downturn in industrial production and the eventual collapse of the US economy.This time of the business cycle saw the US economy get so weak that the US became unprofitable. It took a combination of the Depression and the Great Recession to get the economy back on track. In the 1920s the United States was very dependent on foreign trade and the economy was dependent on the value of US currency. So the combination of the depression and the Great Recession made it quite difficult for the US to get foreign currency and make up for it with domestic demand.While the 1930s could be seen as the beginning of the recovery, it was actually the beginning of the end of the business cycle. This was because we couldn’t get enough foreign exchange to get back on track. So the cycle went from strong to weak again.

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Radhe

Radhe

Well, since we already know each other I think it would be great to get acquainted with you!

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