EconLearn
AP MacroeconomicsEconomic History & Events

Great Depression

The Great Depression was a severe worldwide economic downturn in the 1930s, with mass unemployment and collapsing output and prices.

In the U.S., unemployment hit about 25% and GDP fell sharply after the 1929 stock-market crash and banking failures. It shaped modern macroeconomics, inspiring Keynesian demand management and a larger role for government.

Related terms

AP® is a trademark registered by the College Board, which is not affiliated with, and does not endorse, EconLearn.