Question

In general terms, how, according to the Council of Economic Advisers, did the U.S. economy in 1989 contrast with the U.S. economy in 1981?
2.What are three specific changes that occurred in the economy during the 1980s, according to the Council?
3.Why, according to this report, did the U.S. economy change in the 1980s?

Answer 1

Despite the recession, Reagan was able to raise the GDP in 1981 despite that tax cuts that he had done compared to what Carter did in 1989.The US suffered recession during the Vietnam War, thus the funds were concentrated in that sector in government

Answer 2

1. The Council of Economic Advisers described the U.S economy in the year 1981 as bleak, which it made it seem like the US economy would face a bad hit in the near future. But in contrast, on the year 1989 the economy was well and steadily improving.

2. First change was that real output grew by 4.2 percent. Nonfarm employment increased by almost 19 million jobs and the inflation rate fell from double digits averaging in about 3.3 percent. 

3. According to the Annual Report of the Council of Economic Advisers the change in the U.S economy during the 1980’s was attributable to the economic policies fostered and implemented by the administration. Tax reform, Slower growth of federal spending and prudent monetary policy.

I hope this helps, Regards.