ECON 205 Lecture (2.27.2008)

ECON 205 Lecture (2.27.2008) - ECON-205 Lecture (2-27-2008)...

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ECON-205 Lecture (2-27-2008) Second midterm: Wednesday, April 2 nd Capitalism always goes through business cycles. 1922: Economic Prosperity of the 1920s - Booming economy in the 1920s o Strong demand for capital goods o Development of new appliances o Decline in the labor costs (because of technology) o Boom in residential housing Banking system (credit) What caused the Great Depression? - Excess industrial production - Decline in residential housing - Heavy hand of debt - The stock market crashed o Stock market is the backbone for the American economy - Shrinking the money supply (of the banking system) - Decline in the price-level Why did the stock market collapse? - Margin. What is the margin? Economic Prosperity of the 1940s - Military spending/expenditures
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This note was uploaded on 09/26/2009 for the course ECON 205 taught by Professor Kamrany during the Spring '07 term at USC.

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ECON 205 Lecture (2.27.2008) - ECON-205 Lecture (2-27-2008)...

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