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The Great Depression of 1929-1941 presented the US government with macroeconomic challenges of unprecedented scale. Gordons Chapter 8 includes a case study that describes the Great Depression. The chapter also includes explanation of the Classical economists view of the self-correcting economy, and John Maynard Keynes critique of that theory and his prescriptions for addressing the macroeconomic challenges of the Great Depression.

In a 2 to 3-page essay, please describe the causes of the Great Depression, and the macroeconomic policy responses employed by the US government. Please address the following specifically:

1. Summarize the causes of the Depression.

2. Explain the US fiscal and monetary policy responses to the Depression.

3. Explain why the Depression lasted more than a decade.

4. If you think that the US government should have reacted differently to the situation, describe what you think should have been done.

In addition to the text, please read at least two of the following, and use the readings to inform your work.

https://www.econlib.org/library/Enc/GreatDepression.html

https://eml.berkeley.edu/~cromer/Reprints/great_depression.pdf

https://fee.org/articles/the-great-depression/

 

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