The Great Depression was a period of unprecedented decline in economic activity. It is generally agreed to have occurred between 1929 and 1939. Although parts of the economy had begun to recover by 1936, high unemployment persisted until the Second World War.
<span>The 1920s witnessed an economic boom in the US (typified by Ford Motor cars, which made a car within the grasp of ordinary workers for the first time). Industrial output expanded very rapidly. Sales were often promoted through buying on credit. However, by early 1929, the steam had gone out of the economy and output was beginning to fall.The stock market had boomed to record levels. Price to earning ratios were above historical averages.The US Agricultural sector had been in recession for many more years<span>The UK economy had been experiencing deflation and high unemployment for much of the 1920s. This was mainly due to the cost of the first world war and attempting to rejoin the Gold standard at a pre world war 1 rate. This meant Sterling was overvalued causing lower exports and slower growth. The US tried to help the UK stay in the gold standard. That meant inflating the US economy, which contributed to the credit boom of the 1920s.
</span></span>During September and October a few firms posted disappointing results causing share prices to fall. On October 28th (Black Monday), the decline in prices turned into a crash has share prices fell 13%. Panic spread throughout the stock exchange as people sought to unload their shares. On Tuesday there was another collapse in prices known as 'Black Tuesday'. Although shares recovered a little in 1930, confidence had evaporated and problems spread to the rest of the financial system. Share prices would fall even more in 1932 as the depression deepened. By 1932, The stock market fell 89% from its September 1929 peak. It was at a level not seen since the nineteenth century.
<span>Falling share prices caused a collapse in confidence and consumer wealth. Spending fell and the decline in confidence precipitated a desire for savers to withdraw money from their banks.</span>
Woodrow Wilson and Secretary of State William Jennings Bryan came into office with little experience in foreign relations but with a determination to base their policy on moral principles rather than the selfish materialism that they believed had animated their predecessors' programs. Convinced that democracy was gaining strength throughout the world, they were eager to encourage the process. In 1916, the Democratic-controlled Congress promised the residents of the Philippine Islands independence; the next year, Puerto Rico achieved territorial status, and its residents became U.S. citizens. Working closely with Secretary of State Bryan, Wilson signed twenty-two bilateral treaties which agreed to cooling-off periods and outside fact-finding commissions as alternatives to war.
In a statement issued soon after taking office, Wilson declared that the United States hoped “to cultivate the friendship and deserve the confidence” of the Latin American states, but he also emphasized that he believed “just government” must rest “upon the consent of the governed.” Latin American states were hopeful for the prospect of being free to conduct their own affairs without American interference, but Wilson's insistence that their governments be democratic undermined the promise of self-determination. In 1915, Wilson responded to chronic revolution in Haiti by sending in American marines to restore order, and he did the same in the Dominican Republic in 1916. The military occupations that followed failed to create the democratic states that were their stated objective. In 1916, Wilson practiced an old-fashioned form of imperialism by buying the Virgin Islands from their colonial master, Denmark, for $25 million.
They reacted by having everyone work in the industry. While the men were fighting the war or making things that support the war, the women were also involved in production of weaponry and supplies. Even the children joined the war effort as Hitler's Youth, which was like a program for children to join the support of the government. When things got really serious and dangerous they even sent the children to fight.
Contract adjustment. PPI data are commonly used in adjusting purchase and sales contracts. These contracts typically specify dollar amounts to be paid at some point in the future. It is often desirable to include an adjustment clause that accounts for changes in input prices. For example, a long-term contract for bread may be adjusted for changes in wheat prices by applying the percent change in the PPI for wheat to the contracted price for bread. (See Price Adjustment Guide for Contracting Parties.)
Indicator of overall price movement at the producer level. PPIs capture price movement prior to the retail level. Therefore, they may foreshadow subsequent price changes for business and consumers. The President, Congress, and the Federal Reserve employ these data in formulating fiscal and monetary policies.
Deflator of other economic series. PPIs are used to adjust other time series for price changes and to translate those series into inflation-free dollars. For example, constant-dollar gross domestic product data are estimated using deflators based on the PPI.
Measure of price movement for particular industries and products.
Comparison of input and output costs.
Comparison of industry-based price data to other industry-oriented economic time series.
Forecasting.
LIFO (i.e., last-in, first-out) inventory valuation.
The correct answer should be
<span>c. They developed in almost total isolation from the rest of the world
Only in the new century was it made possible to discover them when shipping became developed enough to allow people to cross into the new continent. They developed isolated from everyone and only ever met other American tribes from time to time.</span>
