Identify at least two (2) causes of the Great Depression. Discuss whether or not you believe that the federal response to the Depression encouraged economic growth and confidence. Provide a rationale for your response.
Two causes of great depression are: 1. Output loss. 2. Unemployment. To clarify output loss means there was not enough industrial production. Unemployment remained very high during the great depression.
Federal Government should have used fiscal policies that affect the level of government expenditures and taxes to bring the economy out of this depression situation. However, the government did not do that and the depression continued for an extended period of time.