These are just some of the ad as changes that

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which the Housing Act of 1949 took efforts to accomplish. These are just some of the AD-AS changes that President Truman needed to juggle to return the country back from wartime footing. 10
ECO 202Fiscal Policy ImpactUnemployment Rate: continued to decrease from 1950 1953Real GDP: continued to increase throughout the 1950s Inflation CPI: the consumer price index continued to increase throughout the 1950sMany of the efforts put into place by President Truman did in fact decrease the unemployment rate over time. Without the efforts he and the government put in to decrease the unemployment rate we might have seen a similar trend as what happened at the end of the First World War when men returning from war flooded the labor market with supply exceeding demand. Efforts taken so that people could get jobs, training for jobs, access to housing, and keeping the economy going ensured that people had the money to spend and things to spend it on. Without efforts taken to change the economy geared for war back to a free economy and ensuring not only an increase to the minimum wage but aiding veterans in their education meant that people had higher paying jobs and GDP will only increase if people are spending money. People are only willing to spend money if they are comfortable with the economy and will spend even more money the better it is doing. Inflation mattered to the people of the 1950s, inflation occurs regardless of how well the GDP does and even continues to increases in a recession so as people have more buying power as a result of getting better pay and better jobs the economy will not be as effected by inflation. 11
ECO 202Monetary PoliciesWartime Finances: The Federal Reserve purchased Treasury debt at very little interest.Billions of DollarsYearMarket Value of Marketable Treasury DebtBefore WW2 the Federal Reserve made little use of open market operations, the buying and selling of government securities. As deficit financing expanded during the war the Federal Reserve began actively purchasing Treasury debt. In April 1942 the Fed officially fixed the rate at which it would buy Treasury bills at 0.00375%. Due to the low discount rate banks found it in their own interests to sell their own Treasury bills to the Federal Reserve when they needed funds. Compared to during the Great Depression confidence in the banks grew and the economy in a more prosperous situation than the previous decade, banks were more willing to expand in loaning and making investments resulting in a decrease in the excess reserves. In 1947, the Treasury agreed to an upward adjustment of the rates on the shorter maturities. Federal Reserve purchases of securities were rather variable. Despite the inflation, the 2.5% rate on long-term bonds was above the equilibrium point of the market and the Federal Reserve actually sold bonds decreasing the amount of money that banks had access to.

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