timely decisions regarding the economy, such as adjusting their fiscal policies to stimulate the economy and prevent a recession and increase in unemployment rates. The economy is measured in a number of ways, such as by measuring the Consumer Price Index and the per capita income to determine whether inflation is being equally applied to salaries and goods, by calculating the unemployment rate to determine whether an acceptable percent of citizens are employed, and by determining the trade balance to determine whether too much of our trade is either in the import or export category.
LO 1-6: Trace the evolution of the American economy and discuss the role of the entrepreneur in the economy Initially, the American economy was agrarian, mostly supported by the export of specific crops, such as cotton and tobacco. Into the 19 th century, the industrial revolution shifted the economy so it was focused on factories, and lead to the rise of laborers as a direct part of the work force, and a decrease in the amount of farmers. Soon after this, the American economy became focused on manufacturing, and producing goods and services directly for consumers, which lead to a flourishing economy. Eventually, with the increase in standard of living after World War II, the economy shifted to a service based economy. This tied in with the rise of technology, and the services that can be provided across these platforms.
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