The Great Depression: Contraction, Households & Policy Responses — Drills · Grade 11 Social Studies

Chapter: The 1920s, Depression & New Deal

What these drills covers

By the end of The Great Depression: Contraction, Households & Policy Responses you should be able to:

4 questions, written answer, each with a worked explanation.

Vocabulary used: context, evidence, interpretation, contraction, bank run.

Problem 1

How did different financial problems reach households through different pathways?
Answer and explanation

A depositor losing access to savings, an employer losing credit, and a farmer facing falling prices experience different mechanisms. Explain their connections rather than using one stock-market event as the whole causal account. International trade and monetary constraints extended the contraction beyond domestic financial markets.

Problem 2

Why could falling prices coexist with declining purchasing capacity?
Answer and explanation

A decrease in nominal prices is not automatically a gain when wages or employment fall and fixed debts remain. Measure income, prices, and obligations together. A cheaper basket of goods may still be unaffordable to a household that has lost its earnings.

Problem 3

Why does the Dust Bowl not explain all national unemployment?
Answer and explanation

Drought and soil practices affected agricultural regions unevenly and interacted with economic distress. The Dust Bowl was not the single cause of national unemployment. Compare environmental, market, landholding, and migration evidence to explain a particular community’s trajectory without assuming every displaced family followed the same route.

Problem 4

How should loan, banking, relief, and work measures be compared?
Answer and explanation

Compare a loan program, emergency bank action, direct relief, and work employment as different responses. Recovery indicators varied over time, including the 1937–1938 downturn. Later wartime mobilization changed conditions again; a policy’s contribution should be assessed through a mechanism and evidence rather than a single completion date.

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