Question

How did underconsumption contribute to the Great Depression?
A. B. C. D.
Explaining why.

Answer 1

Answer: A

Explanation:

• A main cause of the Great Depression was overproduction. Factories and farms were producing more goods than the people could afford to buy. As a result, prices fell, factories closed and workers were laid off.

Answer 2

A. Because a situation in which people are purchasing fewer goods than the economy is producing.