Millennium 4.Clinton Era -(2001), and beyond on the economy 1.President Bush 2.9/11 3.Recession 4. Dot.com bubble 5. Housing boom and bubble -Conclusion(2006) 1. Greenspan Retires Alan Greenspan was the Federal Reserve chairman for the last nineteen years he was the longest chairman in that position. Alan Greenspan was first appointed by President Ronald Reagan in 1987 and retired under President Bush in 2006.
We see this again from 2004 all the way to 2010 with unemployment increasing to 10%. We can see that the economy hits a recession after roughly 10 years of gradual expansion. Okun’s Law states that for every 1% rises in Unemployment, GDP decreases by roughly 3%. The above Scatter Plot chart shows data from 1981 to 2010 and we can see that for every 1% rise in Unemployment over this period, GDP dropped by 0.4%. This shows a negative slop and that the relationship is relatively weak due to the fact the GDP has decreased by less than 1%.
Before we can explore causes, we first need to define what we mean by The Great Depression The Great Depression was a global economic crisis that may have been triggered by political decisions (war reparations post-World War I), protectionism (Congressional tariffs on European goods) or by speculation .Worldwide, there was increased unemployment, decreased government revenue, a drop in international trade. Its kickoff in the U.S. economy was “Black Thursday," October 24, 1929. That's when 12.9 million shares of stock were sold in one day. It was triple the usual amount. At the height of the Great Depression in 1933, more than a quarter of the US labor force was unemployed.
An Analysis Of The 2001 Recession An Economic Analysis of the 2001-2002 Recession The recession is commonly defined as “Two or more consecutive quarters of a shrinking economy.” During the month of March 2001, the world’s largest economy - The United States of America - began experiencing a downturn, leading into a recession. (“Economists call it recession”). In comparing previous recessions that occurred, it appears that similar patterns exist also in the 2001-2002 recession. Such patterns start with increasing interest rates by the Federal Reserve Open Committee, proceeded by growth slowdowns, the fall of real output, and eventually the rise in unemployment. According to Robert E. Scott and Christian Weller, “further increases in real short - term interest rates herald a slowdown.” Further evidence that suggests a recession was on the horizon was information released from the National Bureau of Economic Research that states, “A peak marks the end of an expansion and the beginning of a recession.”(The Business Cycle Peak, March 2001.)
G. The consequences of the 2007 recession. 6. The near collapse of the global financial systems. 7. Unemployment.
There are two views of unemployment known as the classical and Keynesian view. Unemployment rates (which are the percentage of the working population unemployed) vary significantly from country to country with some as low as Belarus’ at 1.0% (2009 est. )(CIA World Factbook) and some as high as Zimbabwe’s at 97% (2009 est. )(CIA World Factbook). The UK’s current level of unemployment is at 2.62 million (BBC News Business, 16th Nov 2011) which has remained high since the global downturn at the end of 2008.
The Great Recession officially ended four years ago. Stocks have recovered but, the job market hasn't. We have lost nearly 8.8 million jobs between January 2008 and February 2010. As a result, our unemployment rate is at 7.2 percent that is a total of 11.3 million people out of which 4.1 million are long-term. It is to be expected that there will be some difficulties finding work.
(cite) According to David Whitten a Professor at Auburn University, the unemployment rate in 1893 exceeded ten percent. Then, on October 29, 1929, America experienced an economic meltdown, it was dubbed “Black Tuesday.” This was do to the crash of the U.S. stock market. The Dow opened that day at 299.6, but crashed 68.9 points to close at 230.7, losing 23 percent of its value. (cite) “Black Tuesday” would give
(c) an inflation. (d) a recession. Answer: A Level of difficulty: 1 Section: 1.1 Which of the following best describes a typical business cycle? (a) Economic expansions are followed by
Also, from the second half of 2007 to the end of 2008, China's top stock indices diminished speedily and decreased to less than half their prices. There were accelerated reductions in economic growth and absolute decreases in exports. In early 2009, Chinese year-on-year economic growth dropped to 6.1 percent, much lower than the growth rates the country had averaged for most of the last ten years. Also, rising unemployment posed a separate concern for Beijing. (Council on Foreign Relations, 2009) In October 2008, China's yearly industrial output growth lessened to 8.2 percent, the lowest since October 2001, because manufacturers carried out