Compare and contrast recessions and depressions and give prominent examples of each.
What will be an ideal response?
A recession is defined as a slowdown in economic growth, specifically in GDP decline, for two consecutive quarters. As prices rise due to inflation, people’s purchasing power declines. This reduction in demand leads to growth in unemployment. Despite the slowing of the economy during recessions, it can still show signs of overall growth. There have been few severe recessions in recent U.S. history. During the 1970s unemployment and inflation uncharacteristically rose simultaneously. In the 1980s President Ronald Reagan, faced with increased international competition had to combat recession. In the 1990s the economy slowed once again under President George H. W. Bush. Very serious and prolonged recessions are known as depressions. During a depression there is a sharp reduction in GDP than lasts for more than one year and is accompanied by high unemployment. The most recent example is the Great Depression, which ultimately prompted the U.S. government to take an unprecedented role in the economy, a role which it maintains to this day.
You might also like to view...
All UN members are represented in which institution?
A. Security Council B. Economic and Social Council C. Secretariat D. General Assembly
Studies of why companies relocate from one state to another tend to find that:
A. the overall level of taxes is the largest factor in the decision to relocate. B. sales tax rates are a major factor in relocation decisions. C. income tax rates are a major factor in relocation decisions. D. taxes are not a major factor in most relocation decisions.
The secretary of commerce, pursuant to his rule-making authority, adopted regulations concerning overfishing, which prohibited persons holding general fishing permits from using spotter aircraft, but allowed other persons holding special licenses to use them. Plaintiffs brought suit to challenge the regulation. What will they have to show in order to overturn the regulation?
a. That the agency acted arbitrarily and capriciously in enacting its regulation b. That the agency did not establish the necessity of the regulation by clear and convincing evidence c. That the agency did not establish the necessity of the regulation beyond a reasonable doubt d. That the agency did not establish the necessity of the regulation by a preponderance of the evidence
Marxism claims that ______ affect(s) political structures.
a. economic structures b. political actors c. inequality d. political ideology