Question

20pts!! :) please answer.

Answer 1

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.

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