Great Depression occurred in:
Options
A1929
B1930
C1931
D1932
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Business CyclesPYQ - Nov 2020Question 98 of 20
All Questions Correct Answer
✅ Option a — 1929
All Options:
- A1929
- B1930
- C1931
- D1932
Detailed Solution & Explanation
To determine when the Great Depression occurred, we need to consider historical economic events.
• The Great Depression is widely regarded as a global economic downturn that started with the stock market crash in the United States.
• This significant event led to a sharp decline in economic activity, resulting in high levels of unemployment and widespread poverty.
• The correct year of the Great Depression's occurrence is linked to the stock market crash, which is a well-documented historical event.
• The stock market crash happened in 1929, marking the beginning of the Great Depression, which is supported by various economic theories and historical records.
The years 1930, 1931, and 1932 are incorrect because they represent the period during which the Great Depression continued and deepened, rather than when it started.
• For example, 1930 and 1931 saw a significant increase in unemployment and a decline in global trade, which were consequences of the Great Depression that began in 1929.
• Therefore, the correct answer is the year the stock market crash occurred, which is the starting point of the Great Depression.
About This Chapter: Business Cycles
Paper
Paper 4: Business Economics
Weightage
5%
Key Topics
Phases, Features, Causes
Business Cycles describe the recurring fluctuations in economic activity — Expansion, Peak, Recession, and Trough. This chapter covers the phases, features, and causes of business cycles, along with theories explaining why economies go through regular boom-bust patterns.
View Official ICAI SyllabusExam Strategy Tip
This is a lower-weightage chapter but easy to score. Focus on memorizing the four phases and their characteristics. Questions are usually straightforward.
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