Industrial Capitalism · World History

The 19th-century 'Business Cycle' in capitalist economies was characterized by:

  1. A steady, unchanging rate of growth every year
  2. Periodic cycles of 'boom' (growth) and 'bust' (recession)
  3. A constant decline in production since the start of the revolution
  4. Growth that only happened during the summer months
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Correct answer: Periodic cycles of 'boom' (growth) and 'bust' (recession)

Industrial capitalism brought about periods of rapid expansion followed by overproduction and financial panics. These 'busts' often led to widespread unemployment and social unrest, prompting debates about government intervention.

Difficulty: Medium Question 10 of 10

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