Which major economic downturn followed the Stock Market Crash of 1929?

• A. Great Depression
• B. Recession of 1982
• C. Inflation Surge
• D. Stagflation

Answer: (A)

The stock market crash of 1929 led to a severe, prolonged economic downturn known as the Great Depression. It lasted about a decade, bringing massive unemployment, bank failures, sharply shrinking production, and deflation that lowered consumer purchasing power. The era also included the Dust Bowl and widespread hardship, ultimately prompting New Deal policies aimed at relief, recovery, and reforms. The other choices refer to different periods or phenomena: an early-1980s recession happened decades later, an inflation surge describes rising prices rather than a long downturn, and stagflation describes high inflation with slow growth in the 1970s, not the 1930s crash.