Final answer:
Prior to the Great Depression, the American economy showed weakness in agriculture, foreign trade, and credit. the collapse of these sectors was due in part to dropping crop prices, diminished global trade and a credit crisis triggered by household defaults during economic hardship.
Step-by-step explanation:
Weakness in the American Economy Prior to the Depression:
The areas of the American economy that showed weakness before the Great Depression included agriculture, foreign trade, and credit. these sectors were impacted by various economic, political, and social choices made in the decade prior. Agriculture was already struggling with the prices for crops dropping significantly, which made it difficult for farmers to pay their mortgages, leading to foreclosures and land degradation. foreign trade suffered greatly, with global trade decreasing across the globe during the Depression, greatly affecting exports and diminishing revenue from international markets. the credit system also showed fragility; consumer goods were bought on credit, and when job losses began, defaults on credit payments ensued, leading to further layoffs and economic decline.
Worldwide Woe: The Great Depression had a profound impact on global trade and the economies of countries around the world. GDP decreased by 15 percent between 1929 and 1932, highlighting the magnitude of the downturn in trade.
Credit Collapse: The overextension of credit for consumer purchases, combined with the unequal distribution of wealth and subsequent inability of households to save, contributed to a failing credit system when the Depression hit.