Research two periods in history, one where the United States experienced an incr
ID: 1209271 • Letter: R
Question
Research two periods in history, one where the United States experienced an increase in inflation and the other an increase in unemployment. Write a paper discussing the causes and outcomes. Use the aggregate demand and supply models to analyze the causes and why they led to the inflation and/or unemployment. For specific paper requirements, please see the rubric attached to this assignment. 200 word minimum for each period. Paper must be written in APA format, for more information on APA formatting, please click the "Resources" tab. 2 sources, other than the textbook, must be cited. Include a bibliography.
Explanation / Answer
The United States experienced inflation which showed increase in the rate of unemployment in the year 1970s and 1980s. The cost of living adjustment guarantees the wages to uplift inflation. There was a policy known as adjustable rate mortagage. It is a kind of loan which helped people to purchase home at the time of inflation at a reduced rate of interest. The more the inlfation the less would be the loan repayment.
http://philschatz.com/economics-book/contents/m48730.html
http://www.federalreservehistory.org/Period/Essay/13
The United States experienced an increase in unemployment in the period of 1948 which was a post war era. Due to loss, destruction and heavy financial breakdown, the business and trade got affected badly. There was a reduction in the rate of employment drastically. The competition against foreign competitor reduced so much that there has been more reduction in taxes to bring back things as usual. The employment was increased by increasing funds to generate business in the market. The outputs by the firms were increased to increase the employment ratio than before.
http://www.washingtonpost.com/wp-srv/special/business/us-unemployment-rate-history/
https://www.debt.org/jobs/unemployment/united-states/
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