Question

How did overproduction help lead to the Great Depression?

Diá
a. It created a surplus which caused prices and profits to drop which led to workers being laid off
b. It caused people to believe stocks were more valuable than they actually were
c. It led to the government shutting down many businesses because of their increased pollution
d. It made American goods too expensive for people to be able to afford
make money? (Choose Two)
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Answer 1

Overproduction during the Great Depression led to a drop in prices and profits, causing businesses to lay off workers and reducing consumer spending. This worsened the economic downturn and contributed to the stock market crash.

Step-by-step explanation:

During the Great Depression, overproduction played a significant role in exacerbating economic woes. The surplus of goods caused prices and profits to drop, leading to businesses laying off workers to cut costs. The decrease in employment and income levels further reduced consumer spending, creating a negative cycle of declining demand and production. This overproduction also contributed to the stock market crash as people realized that stocks were overvalued due to inflated expectations of future earnings.

Learn more about the impact of overproduction on the Great Depression