The Microeconomics of Depression Unemployment journal describes the events during the great depression in the 1930s. In the journal, there is a description of how the great depression affected individuals' lifestyles ranging from behavioral changes to purchase behavior and the rates of unemployment. In the article, the great depression hit hard the USA leading to an estimated 25 percent rise in unemployment, failure of banks, and deflation in the prices of commodities leading to lifestyles that most citizens would not manage (Margo, 1991). Besides, there was a drop in the standards of living among individuals during the great depression as a result of the increased human suffering.
The economic idea of the great depression is how the depression affected the world's economy. The great depression can be explained using aggregate demand and aggregate supply (Coppock & Mateer, 2018, p 447). The adverse effects realized during the significant depression period can be explained by the long period the great depression took. A decreased aggregate demand leads to a decreased real GDP, which in turn affects the microeconomic well-being. Besides lowering the real GDP, there are also increased unemployment levels and reduced commodity prices, which involved great depression (Coppock & Mateer, 2018, p 446). Besides, microeconomic policies also affect the purchase options for most individuals. The monetary and fiscal policies during the great depression affected individuals leading to the inability to purchase.
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I agree that the great depression had enormous effects on the world's economy. The events during the great depression can be realized, and the impact of the depression was felt for over a long time. For example, the unemployment rate rose to 25 percent and remained at over 15 percent for the decade 1930 and 1940 (Coppock and Mateer, 2018, p 446). During this time, human suffering was on the rise. Despite the deflated prices, affordability of purchase was low since most individuals were unemployed. Besides, consumer choices were altered to only essentials, and therefore providers of other goods and services that were not basic had low business periods. In general, the great depression had diverse effects on the world's economy and especially the USA.
In conclusion, Christians would have acted in the same way as economists during the great depression. Following the advice of economists, the US government decided to provide relief food to cushion those who had been adversely affected. Besides, the USA's government under President Roosevelt developed programs such as WPA that would help in the rising of the fallen economy. Christians do not encourage human suffering, so just like economists, they would have acted to cushion the economy and the suffering.
References
Margo, R. (1991). The Microeconomics of Depression Unemployment. The Journal of Economic History, 51 (2), 333-341. Retrieved December 18, 2020, from http://www.jstor.org/stable/2122578
Coppock, L., & Mateer, D. (2018). Principles of macroeconomics . W.W. Norton.
