Describe’the Great Depression’of 1929.
The Great Depression took place in 1929 which adversely affected the developed economies of Europe and North America. There was extreme fall in Aggregate Demand due to fall in income, which led to a vicious circle of poverty. Demand for goods in the market was low. Many factors of production were lying idle, workers were thrown out of their jobs. The consequences of Great Depression gave birth to the study of macroeconomics.