Global Economic Crisis
Definition
The global economic crisis refers to a severe downturn in the economy that affects multiple countries and regions simultaneously, resulting in widespread unemployment, business failures, and financial instability.
Analogy
Imagine you're at a school fair where all the games and rides suddenly stop working. People lose their jobs running the games, businesses go bankrupt, and everyone feels uncertain about their money. That's what happens during a global economic crisis - it's like an amusement park shutting down and causing chaos for everyone.
Related terms
Unemployment: Unemployment is when people who are actively seeking work are unable to find employment. It often increases during an economic crisis as companies lay off workers to cut costs.
Business Failure: Business failure occurs when a company is unable to generate enough revenue to cover its expenses and sustain its operations. Economic crises can lead to many businesses closing down due to decreased consumer spending.
Financial Instability: Financial instability refers to a state of uncertainty and unpredictability in financial markets. During an economic crisis, stock markets may crash, banks may fail, and people may lose confidence in the stability of the economy as a whole.
"Global Economic Crisis" appears in:
Subjects (1)
Practice Questions (20+)
What global economic crisis occurred in the late-1920s and early-1930s?
What global economic crisis led to the Great Depression?
What event triggered the global economic crisis in Europe during the 1920s?
Which economic idea was stimulated by the Global Economic Crisis of the 20th century, especially in Western societies?
What was a significant socio-political consequence in Europe due to the global economic crisis?
What was a major contributing factor to the global economic crisis of the 1920s and 1930s?
Which ideology gained significant popularity as a result of the global economic crisis during the interwar period?
How did governments respond politically during the global economic crisis?
What was one major effect of the global economic crisis in Europe?
What was a key impact of the global economic crisis on society?
What was the primary cause of the global economic crisis in Europe during the interwar period?
What factor primarily led to rise of fascist regimes in Europe during global economic crisis?
What policy, implemented after World War I, contributed significantly to the onset of the Global Economic Crisis in Europe?
Which event directly triggered the global economic crisis in Europe?
Which social phenomenon rose in response to hardships caused by global economic crisis post-World War I?
How did the global economic crisis affect the working class in Europe?
Which event largely contributed to the global economic crisis across Europe after World War I?
How did France respond to its own internal version of the global economic crisis during this period?
Which group's ideologies gained traction in Europe due to the global economic crisis during the interwar period?
How did Britain attempt to counteract the effects of the global economic crisis during this period?
Are you a college student?
Study guides for the entire semester
200k practice questions
Glossary of 50k key terms - memorize important vocab
Resources
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.