Depression (economics)

High school (ages 12+)
People & Society

Name:

Date:

Step 1 · Read the article

Open the article and read it at the level above. Then answer the questions below in your own words.

https://smallwhale.org/articles/depression-economics

Write what each word means, using the article.

Do not copy the article. Write two things you learned, the way you would explain them to a friend.

Answers below are taken from the article’s stored facts, so they match what the student read.

1. What is the keynesian economics role?Advocates for government intervention (fiscal and monetary policy) to combat depressions
2. What is an economic depression?A depression is a very long and deep drop in jobs, factories, and stores, where many businesses close and people lose their jobs.
3. How does a depression start?It can begin when big problems like a stock market crash, weak banks, or bad trade rules happen, making people lose confidence and stop buying things.

Aggregate Demand: The total demand for goods and services in an economy at a given price level.
Fiscal Policy: Government actions related to spending and taxation to influence the economy.
Monetary Policy: Actions by central banks to manage the money supply and credit conditions.