How did unemployment cause the economy to get even worse during the Great Depression? 1 People had more time to spend on the farms and not enough time to travel to the cities to purchase necessary goods. 2 People were using their savings to buy the goods and services they needed to survive. 3 People took loans out from their neighborhood banks at very high interest rates and used this money to buy items they needed. 4 People had no money to buy goods, which led to more factories and businesses going out of business and more unemployment.

Over the next several years, consumer spending and investment dropped, causing steep declines in industrial output and employment as failing companies laid off workers. By 1933, when the Great Depression reached its lowest point, some 15 million Americans were unemployed and nearly half the country's banks had failed.

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rowboatontario rowboatontario · Answer 2 · 2022-03-11T11:59:24+01:00

The Correct option is 4. During Great Depression unemployment caused the economy to get even worse as People had no money to buy goods, which led to more factories and businesses going out of business and more unemployment.

Great Depression

The great depression was a period of vicious cycle of depression, the failure of bank led to fall of market, which led to rise in unemployment. As people became unemployed they started to save money rather than to spend it, which led to more factories going out of profit, which again led to rise in unemployed.

This is why Great depression is called as vicious cycle of depression, which started in 1929 and ended in 1939. Hence, the correct option is 4.

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