43. The Great Depression and the IS/LM

Interacting with graphs to learn more about the Great Depression

In 1929, the U.S. unemployment rate was 3.2%. By 1933, it had increased to 24.9%. Not until 10 years later, in 1942, was the unemployment rate back down to 4.7%. What shocks increased the unemployment rate by so much, so quickly?

Objective

• Use the IS/LM framework to discover the cause of the Great Depression

Click on the 'Exploration' link above to continue.