Which of the following was a primary cause of the Great Depression?

Study for the ORELA Social Studies Test with questions and detailed explanations. Each question is crafted to help you succeed. Prepare effectively for your exam!

The Great Depression, which began in 1929, was primarily triggered by the stock market crash, which led to widespread unemployment. The collapse of the stock market shattered consumer and business confidence, prompting a decrease in spending and investment. This resulted in business failures, which in turn caused massive layoffs and a surge in unemployment rates. Without jobs, consumer purchasing power diminished significantly, exacerbating the economic decline as businesses struggled to sell goods and services, leading to further layoffs and a cycle of despair.

While other options like an increase in international trade or industrial growth in the 1920s may seem relevant, they do not directly connect to the immediate causes of the Great Depression. Similarly, new technologies in agriculture contributed to efficiency but did not cause the economic collapse. Ultimately, the stock market crash and the following spike in unemployment were key factors in triggering the widespread economic hardship that characterized the Great Depression.

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