Business Cycle and Great Depression – Flashcards
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What are the 5 stages of the business cycle
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Prosperity, Inflation, recession, depression, recovery
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What is prosperity
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Time of economic growth. People start making money so there is a high demand and low supply
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What is inflation
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People make money so there are higher prices. However people cant afford products so they stop buying.
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What is a recession
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Too many products and people are not buying. Companies cant afford to pay people so others are laid off
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What is a depression
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People are not spending money because of fear of losing their jobs. Companies are not producing because no one is buying
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What is recovery
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Prices stabilize and those who saved start spending again. More jobs but still high unemployment
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What are the 2 basic economic principles
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A mixed economy is what Canada has and that means the government has some involvement in the economy. The other one is over productions when a company produces more good than they sold. The cut down production so less jobs
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Explain the introduction of stocks
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To grow, companies made stocks and investors bought them think the company would do well. in 1920 investors bought on margin meaning they bought shares with 10% down payment to the bank
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What happened on black tuesday
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The new York stock market crashed
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What is the great depression
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An economic crisis that began in 1929
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What is relief
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A relief camp was a place for the unemployed to work hard labor for small wages and a place to stay
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What were the qualifications of a relief camp
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Live in an area for a year, prove you cant support yourself, turn in car, remove phone, register at unemployment office, Allow officer to investigate your home, and work on municipal project from time to time
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What is riding the rails
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Men would jump on trains to get to the next stop so they can find a job. There were no jobs in prairies so they went to British Columbia
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What happened in Vancouver relief camps
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Vancouver could not hold the influx of people so they made new rules
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What were the new rules in the Vancouver relief camps
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older than 18 single and male, free transportation, If you leave you cant return, 44 hour work weeks for ¢20 a day
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What is the On-To-Ottawa trek
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in 1935 1000 men left relief camps to protest the conditions
