Notes (T1) Flashcards
Inflation
The increase in prices of products
Is inflation normal for an economy?
Yes
Trade
The buying and selling of goods between countries
Tariffs
A tax placed on on products being traded
What is the role of tariffs?
To stop cheap imports flooding the country
Interest rate
A % placed on some money
Give an example of when interest rates are used
When you loan money, an interest rate is placed on that
What is GDP?
Gross Domestic Product
What does Domestic mean?
Within the country
What does National mean?
Worldwide
What sort of attitude did the government have during the boom?
Laissez-faire
Unemployment never rose above ___?___% in the years 1922-29
3.7%
During the boom, unemployment never rose above what?
1%
How many hours did workers do on average in 1929?
44
How many hours did workers do on average in 1920?
47
How did the decrease in the average amount of hours for workers affect them?
They had more leisure time - meaning they spent more money, fuelling the boom
How much did the real wages of workers rise by between 1914-1929?
14%
How much did the production of goods rise by during the boom?
50%
In 1929 how much was spent on radios?
$852 million
Boom
Economy is thriving - high employment and lots of money
Bust
Economy fails - High levels of unemployment and little money
Recovery
Recovering from an economic crash/bust
Who didn’t experience prosperity?
Black, Hispanic and Native Americans
What were the reasons for the 1920s boom (8)?
- Laissez-faire gov.
- WW1 made them rich
- Consumer boom
- Advantageous foreign market
- The automobile
- Hire purchase
- Advertising + marketing
- Technological advances
