Answer :
During the 1920s, the United States economy experienced enormous growth and became the wealthiest and most productive economy in the entire world. Therefore, during this time the economy went through a period of expansion. However, in 1929 a major depression plagued the American economy which led to massive decline, therefore this period would largely be defined as an expansionary period which was a peak in the economic cycle prior to the Great Depression.
The economy of the United States during the 1920s moved through a phase of ‘Expansion’.
Further Explanation:
It was the period of the 1920s when the United States saw the period of expansion in almost all fields such as Technology and Finance. The era of the 1920s saw two different periods. From 1920 to 1929, there were technological advancements in the field of industry and farming whereas in 1929, the Stock market crash came and with that, there was the start of the period of the Great Depression. But, Prior to 1929, there was a period of expansion.
During the same period of time, The United States started to put various kinds of restrictions on its monetary policy in order to promote economic growth. But, the government failed to reach a joint decision on the fiscal issue. A governmental financial company was set up by President Hoover whose work was to provide any kind of financial assistance to the banks as well as institutions related to finance who were on the verge of bankruptcy and because of policies made by President hoover in regards to fiscal, There was an increase in a recession.
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Answer Details:
Grade: High School
Chapter: Economy in the 1920s
Subject: History
Keywords: United States, Economy, Government, Bankruptcy, Hoover, Fiscal, Stock market, Monetary, Financial assistance.
