Note: This is post #112 in a weekly video series on basic economics.
During the “Roaring Twenties” the economy was booming—growing at nearly three percent per year—while inflation stayed near zero percent. But in 1929 the stock market crashed ushered in the Great Depression. What happened to cause the rapid change?
In this video by Marginal Revolution University, economist Alex Tabarrok examine the causes behind the Great Depression with the help of the aggregate demand-aggregate supply model. By the end of the video you’ll walk away with a better understanding of the many factors behind the Great Depression and how to apply the AD-AS model to a real-world scenario.
(If you find the pace of the videos too slow, I’d recommend watching them at 1.5 to 2 times the speed. You can adjust the speed at which the video plays by clicking on “Settings” (the gear symbol) and changing “Speed” from normal to 1.25, 1.5 or 2.)
Click here to see other videos in the Introduction to Economics series.
