Acton Institute Powerblog

Understanding the Great Depression

Share this article:
Join the Discussion:

Free weekly Acton Newsletter

Note: This is post #112 in a weekly video series on basic economics.

During the “Roaring Twenties” the economy was booming—growing at nearly three percent per year—while inflation stayed near zero percent. But in 1929 the stock market crashed ushered in the Great Depression. What happened to cause the rapid change?

In this video by Marginal Revolution University, economist Alex Tabarrok examine the causes behind the Great Depression with the help of the aggregate demand-aggregate supply model. By the end of the video you’ll walk away with a better understanding of the many factors behind the Great Depression and how to apply the AD-AS model to a real-world scenario.

(If you find the pace of the videos too slow, I’d recommend watching them at 1.5 to 2 times the speed. You can adjust the speed at which the video plays by clicking on “Settings” (the gear symbol) and changing “Speed” from normal to 1.25, 1.5 or 2.)

Click here to see other videos in the Introduction to Economics series.

Enjoy the article?

Click below to view our latest and most popular posts!

Read More

Joe Carter Joe Carter is a Senior Editor at the Acton Institute. Joe also serves as an editor at the The Gospel Coalition, a communications specialist for the Ethics and Religious Liberty Commission of the Southern Baptist Convention, and as an adjunct professor of journalism at Patrick Henry College. He is the editor of the NIV Lifehacks Bible and co-author of How to Argue like Jesus: Learning Persuasion from History's Greatest Communicator (Crossway).

Comments