Question

Economists blamed all of the following for causing the depression except

Structural problems made the 1920s prosperity far more unstable than the public realized at the time.


Wage increases lagged behind factory output, which reduced purchasing power.


Assembly-line production methods encouraged overproduction.


Housing, automobile, textile and other industries were deeply overextended.


Key industries embraced costly new technologies that they could not financially support.

Answer 1

The Great Depression refers to the time when there was a massive decline in the economy and the market. There were number of reasons that this happened and this include the use of expensive technologies wherein they could not financially support, the methods of overproduction, structural problems and the lagged increase of wages, except for the overextension of textile, housing and other industries.