ECO 202 Final Project.pptx - ECO 202 Peter Errera ECO 202...

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ECO 202 Final Project: Macroecono mic Analysis of the US in the 1950s ECO 202 Peter Errera
ECO 202 1950’s U.S. Economic History Overview Men come home from WWII and start families- the baby boomer generation Suburbs begin forming Korean war starts and ends Cold war tensions Vietnam war starts Eisenhower elected Segregation in schools is declared unconstitutional Rosa Parks is arrested TV becomes popular
ECO 202 GDP Expansion 1950: Korean war causes an increase in GDP 1950: TV, marketing, and credit cards cause a rise in consumerism 1955: Vietnam war causes an increase in GDP 2 relatively mild recessions in 1953/54 and 1957/58. FIGURE ONE: Gross Domestic Product, U.S. Bureau of Economic Analysis.
ECO 202 GDP: Important Events Korean War Interstate Highway System FIGURE TWO: Unemployment Rate by Year Since 1929 Compared to Inflation and GDP. Amadeo, K.
ECO 202 Unemploymen t FIGURE THREE: Civilian Unemployment Rate, U.S. Bureau of Economic Analysis. Number of unemployed people/ the labor force Increase in unemployment during recessions Lowest 2.7% in 1952 Highest 6.2% in 1958
ECO 202 Inflatio n War tends to cause inflation- both the Korean and Vietnam wars did cause inflation, but not nearly as much as WWII. Inflation rate= (CPI2-CPI1)/ CPI1 x 100. Inverse relationship with GDP FIGURE FOUR: Consumer Price Index, U.S. Bureau of Economic Analysis.
ECO 202 Unemployment and Inflation- Important Events Korean War Increased inflation Decreased unemployment Highway Federal Aid Act of 1956 Increase inflation Decreased unemployment AD/AS model The highway act would cause a rightward shift in the SRAS, due to increased resources/technology. This also increases real GDP.

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