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Chapter 21: Problem 3

Briefly compare the severity of recessions before and after 1950\. What explanations have economists offered for the period of relative macroeconomic stability from 1950 to \(2007 ?\)

Short Answer

Expert verified
The severity of recessions decreased after 1950 due to better economic policies and financial stabilization. Factors such as stronger fiscal and monetary policies, technological improvements, and increased globalization have all contributed to the relative macroeconomic stability from 1950 to 2007.

Step by step solution

01

Gather Relevant Data

Start by gathering historical data on recessions before and after 1950. Look for information on indicators like GDP decline, unemployment rates, and lengths of recession periods.
02

Compare the Severity of Recessions

Once you have the data, compare the severity of recessions during these two periods. You should note any key differences and trends.
03

Examine the Period of Stability

Next, research the period from 1950 to 2007. Look at economic policies and global events during this time that may have contributed to stability.
04

Summarize Major Findings

Summarize the differences in recession severity and explain the reasons behind the stability during 1950-2007 using the data and information gathered from your research.

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