ssahirnsgch23ac06na.fm Page 352 Tuesday, December 13, 2005 5:36 PM
Section 1 Notetaking Study Guide Question to Think About As you read Section 1 in your textbook and take notes, keep this section focus question in mind: Why did the economy collapse after the stock market crash? Use
this chart to record key information from the section. Some information has been filled in to get you started. Hoover and the Crash The Collapsing Economy
• Problems with the U.S. economy started in the late 1920s . • Major industries were declining, but stock prices were still __________________. This encouraged risky investments by __________________________________________ . • When stock prices started falling, margin buyers _____________________________ . • The stock market crashed on _______________________, known as Black Tuesday. The Great Depression Begins
• The Great Depression was a major economic and __________________ disaster that affected the entire country. • The Great Depression lasted ______ years and was triggered by the _____________ . • One problem that caused the Great Depression was __________________. Factories produced more goods than people could afford to buy. • The __________________ crisis also contributed to the Depression. Banks closed because farmers could not repay loans and from losses in the stock market crash . • People had less money because ___________________________________________ .
• • • •
From 1929 to 1933, the unemployment rate went from ________ to ________ percent. The number of people without jobs was about __________________. With little or no money, many people lacked adequate food, shelter, and clothing . The Great Depression was a time of widespread ______________________________ . Hoover Responds
• At first, President Hoover’s advisers recommended doing ______________________ . They believed the Depression was temporary . • Hoover’s first measures encouraged businesses and local governments—but not the _____________ government—to take the lead to help people. He also urged private ____________________ to set up _________________________________________ . • As the Depression worsened, he created the _________________________________ in 1932 to provide __________________ to key industries and local governments. • The treatment of the _____________________________ further damaged Hoover’s popularity.
Refer to this page to answer the Chapter 23 Focus Question on page 363.
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