Compare and contrast the U.S. economic record prior to 1940 and after 1950 . How do the two time periods differ? What best explains the differences according to a macroeconomist?
The economy experienced business cycles of greater magnitude before 1940 . Cycles after 1950 have been much less extreme. Before 1940, both inflation and deflation occurred. After 1950, inflation was a fairly constant condition and deflation never occurred over a prolonged period. Unemployment rates have been, on the average, much lower during the post-1950 time period. Most economists explain the superior economic performance of the post-1950 period to the use of Keynesian demand management stabilization policies that were implemented after World War II. The economy prior to 1940 could be described as "natural" or unmanaged. The economy after 1950 could be described as actively managed or stabilized.
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Consumption goods
A) include spending on machines and buildings so that goods can be produced in the future. B) are goods that are used to make other goods. C) include goods such as DVDs that firms hold in inventory. D) are only the goods bought by households for immediate satisfaction.
Jobs lost to outsourcing can be partially offset by jobs gained from
A) increased output from another industry. B) greater trade imbalances. C) higher opportunity costs. D) higher production costs.
If a price ceiling of $3 is imposed on gasoline and the market price is $2,
a. the price of gasoline will rise. b. the price of gasoline will fall. c. the price of gasoline will remain unchanged. d. the demand for gasoline will increase.
Higher protection raises the overall level of employment
Indicate whether the statement is true or false