b. In one word, what was the cause of the recession indicated in question "a" above?C. If the GDP was 22 trillion in "a" above. how much output was lost?d. How much income was lost for each person if the U.S. population was 320 million in "a." above?e. If the labor force was 160 million, how many workers lost their jobs in "a" above? depression: 2-A recession is defined as two or more consecutive quarters of zero or negative growth. The table below summarizes all of the recessions that the U.S.economy has experienced since the great Dates Duration (Months) Percentage Decline in Real GDP Peak Unemployment Rate 43 35.4% 24.9% 13 20.0 8 23.8 4.3 11 66 14 10 10.0 6.1 8 14.3 7.5 10 7.2 7.1 11 8.1 6.1 16 14.7 0'6 6 8.7 7.6 16 12.3 10.8 8 2.2 6.5 8 0.6 5.6 18 4.1 10.0 3 32.0 14.7 Aug.1929-Mar.1933 May 1937-June 1938 Feb.1945-Oct.1945 Nov.1948-Oct.1949 July 1953-May1954 Aug.1957-Apr.1958 Apr.1960-Feb.1961 Dec.1969-Nov.1970 Nov.1973-Mar.1975 Jan.1980-July 1980 July 1981-Nov.1982 July 1990-Feb.1991 March 2001-Nov.2001 Dec.2007-June 2009 March 2020-May 2020
Added by Matthew W.
Close
Step 1
The cause of the recession is not provided in the given information. Therefore, we cannot determine the cause based on the given data. Show more…
Show all steps
Your feedback will help us improve your experience
Rashmi Sinha and 84 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
The Great Depression was the worst economic disaster in U.S. history in terms of declines in real GDP and increases in the unemployment rate. Use the data in the following table to calculate the percentage decline in real GDP between 1929 and 1933 : $$\begin{array}{|c|c|c|c|c|}\hline {\text { Year }} & {\text { Nominal GDP (billions of dollars)}} & {\text { GDP Price Deflator $(2009=100)$}} \\ \hline \text { 1929 } & {\$ 104.6} & {9.9} \\ \hline \text { 1933} & {57.2} & {7.3} \\ \hline\end{array}$$
Rashmi S.
Consider the data in the following table for 1969 and 1970 (where the values for real GDP and potential GDP are in 2009 dollars): a. In 1969 , actual real GDP was greater than potential GDP. Briefly explain how this is possible. b. Even though real GDP in 1970 was slightly greater than real GDP in 1969 , the unemployment rate increased substantially from 1969 to $1970 .$ Why did this increase in unemployment occur? c. Was the inflation rate in 1970 likely to have been higher or lower than the inflation rate in 1969$?$ Does your answer depend on whether the recession that began in December 1969 was caused by a change in a component of aggregate demand or by a supply shock?
Aggregate Demand and Aggregate Supply Analysis
Macroeconomic Equilibrium in the Long Run and the Short Run
Consider the data in the following table for 1969 and 1970 (where the values for real GDP and potential GDP are in 2009 dollars). a. In 1969 , actual real GDP was greater than potential GDP. Briefly explain how this is possible. b. Even though real GDP in 1970 was slightly greater than real GDP in 1969 , the unemployment rate increased substantially from 1969 to $1970 .$ Why did this increase in unemployment occur? c. Was the inflation rate in 1970 likely to have been higher or lower than the inflation rate in $1969 ?$ Does your answer depend on whether the recession that began in December 1969 was caused by a change in a component of aggregate demand or by a supply shock?
Jennifer S.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD