Cause Of 9/11 Recession In The United States

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n our world there have been many recessions. Well what is a recession? A recession is a substantial and general decline in overall business activity over a significant period of time. It is different from gross national product(GNP) because is does not include the value of all final output produced by U.S companies. The recession in 2001 had a big impact on our economy in the U.S. As an economic effect of 9/11, the stock markets closed for four trading days. The unemployment rate went up 5.5%. When the planes hit the twin towers, the interest rates were already low at 3.5%. A couple weeks later, the feds cut them to 2.5%. The biggest impact was the rebuilding of what was destroyed. The World Trade Center buildings that were flown into but not rebuilt, the Pentagon, and the 30,000 people that were killed in the attack. Those are just some economic effects, but there are many more economic causes of the 9/11 recession in 2001.…show more content…
The unemployment rate was a lagging indicator of economic activity. The 2001 recession differed from other recent recessions for many reasons. There were many leading indicators, telling economists that this recession was going to happen. They included stock prices, unemployment, housing starts, orders for new capital equipment, and many more. All of these lead us into the 2001 recession, but none predicted the harsh economic slowdown. The coincident indicator during the recession was at 50%, it shows a dip at the start of the recessions and then signals an expansion about a year after the end of the recession. The total sales during that period increased, and business activity
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