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Unformatted text preview: products. The laws of supply and demand made the industries drop their level of output to compensate for their loss of overall profit. This resulted even less work, work, money, and jobs. HISTORICAL EXAMPLE OF LABOR SUPPLY AND DEMAND 3 The Great Depression was ended when America entered in to World War II. The war caused a demand for war material. Other countries like Britten need war goods. This demand created many jobs. The new jobs pervaded a new source of income that enabled families to start spending money again. President Roosevelt new policies helped change things in the economy along with creating new agencies to help. This created more jobs. The demand for goods increased to level out with the supply and the labor market increased. Reference Smiley, G. (2008). "Great Depression." The Concise Encyclopedia of Economics. Retrieved from http://www.econlib.org/library/Enc/GreatDepression.html...
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- Spring '11