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Drupady [299]
2 years ago
5

One cause of the Great Depression was a decrease in the demand for goods. Around 1928, demand for new housing decreased. This le

d to fewer sales of building materials. With fewer people buying houses, unemployment increased for construction workers and suppliers. As people lost their jobs, they bought fewer goods. This led the automobile industry and other manufacturers to make fewer goods. The prices of agricultural produce also dropped.
How did the drop in consumer demand affect the US economy?

More workers were needed to build more products.
Factories used more building materials.
More houses were built to drive up demand.
Factories reduced production.
History
1 answer:
stellarik [79]2 years ago
3 0

Answer:

Explanation:

How did the drop in consumer demand affect the US economy?

The pace of economic growth has slowed to 2% due to a significant decrease in consumer expenditure. The US economy expanded at a 2% annualized rate in the third quarter, the weakest rate since the conclusion of the 2020 recession. Consumer expenditure and home investment slowdowns aided in keeping the figure low.

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