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Unit 5: Crisis and Change

Lesson E: Economic Depression and Political Collapse

Activity 1: Economic Responses

Directions: Use your understanding of the economic terms you just reviewed to respond to the three scenarios. Each scenario will provide a backdrop of the economic health of a country. These scenarios are similar to what occurred during the period of the Great Depression. Your task is to determine the implications or consequences for the average working family. Be prepared to discuss your answers.

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Classroom Activity - Solutions to the Economic Depression

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Directions: Re-read the Country B scenario and then prepare a response to the discussion questions below. Follow your teacher’s directions to participate in your class discussion.

  • Country B is on the gold standard and is an export-dependent country. Prices are low and profits are also low. The balance of trade is much lower than it has been. The gross domestic product shows negative growth, and the government has increased taxes to off-set losses. Unemployment is up to 25%.
  • Now apply your understanding of these economic principles to propose a solution to the economic depression currently suffered by Country B. Propose what you think both government and individuals could do to improve conditions.


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As you proceed through the lesson, you will be able to compare your response to the real responses of countries around the world.