Chapter 1, Problem 16P

To determine

During the great depression, food was left rot in the fields or fields that had once been activity cultivated were left fallow. Use one of the principles of economy-wide interaction to explain why.

Concept Introduction:

Overall spending sometimes gets out of line with the economy’s productive capacity.

Depression: It is a situation which is a long-term downturn in an economy which leads to the slowdown in economic activity.