With a decreasing demand, the economy could no longer produce to the same levels, pressured by price deflation as well, so the spiral continued to tail the economy downwards.
The New Deal measures produced the exact reverse effects. In this sense, stimulating the economy with new governmental programs and increased governmental spending meant that new jobs were created and that the economy gradually resumed its growth.
Bibliography
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2. Ben S. Bernanke. August 1994. The Macroeconomics of the Great Depression: a Comparative Approach. Working Paper No. 4814. National Bureau of Economic Research. Page 23.
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The people. The faces At the doors. Then my own face at the door. No work, man. The pavement beneath my feet. I can feel the cardboard in my shoes and once Only the finest of leather would do. From living It up putting on the Ritz in the Big Apple To selling Apples and eating Ritz crumbled In charity stews. FDR says Big government will provide big jobs And once again I will spend, and America Will
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