Practice question · Select all that apply
Which statements about the Long Depression of roughly 1873 to 1896 are accurate?
Hints
- Three of these describe deflation; one describes a slump that did not happen.
- Ask what the word "depression" meant to contemporaries who were watching prices, not output.
Show the answer
- A. Output in most industrial economies continued to grow
- C. It began with financial crashes in Vienna and New York in 1873
- D. Prices fell across the period in most industrial economies
Why
It was a price depression, not an output depression, which is why the name causes so much confusion. Falling prices squeezed profits and debtors’ creditors in ways that felt catastrophic to producers, and generated tariffs, cartels and a search for secure markets, while the volume of goods produced kept rising.
Practise Capitalist Crisis, Colonialism and Imperialism
The app has 5 more questions on this lesson, and keeps your place in the course. History II is free to start.
More questions on Capitalist Crisis, Colonialism and Imperialism
- If imperialism were driven by surplus capital seeking outlets, British investment should have flowed into…
- Britain abandoned free trade along with the other great powers during the tariff revival of the 1870s and…
- Complete the account of the Second Industrial Revolution.
- Match each writer to the mechanism of imperialism they proposed.
- Arrange the steps of the Robinson and Gallagher account of British expansion.
- In which year did J. A. Hobson publish Imperialism: A Study, the work that supplied the surplus-capital…
- The theories of Hobson and Lenin were influential on policy and public argument even where their proposed…
- Cain and Hopkins argue that British imperialism was driven by "gentlemanly capitalism", the City of London…
- The Long Depression (1873–1896) was marked by falling price levels rather than a collapse in overall output.…