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30 May, 17:00

How did falling demand contribute to the outbreak of the great depression

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  1. 30 May, 17:13
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    Falling demand leads to falling prices, and less production, which leads to a deflationary cycle that spirals out of control. It actually started when agriculture commodities (wheat, corn, beef etc) was over supplied. Followed by an artificially inflated housing market which collapsed when the market corrected.
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