The Great Depression: The Effects Of Keynesian Economics

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The Great Depression was during 1929 - 1939 which it was one of the greatest and longest recessions, it is told to start from the stock market crash of 1929. The Great Depression earns the title of being Great because it affected every continents except antarctica, the Great depression caused America unemployment rate to increase to 25 percent, it affect Great Britain which cause them to be in a recession, it also affected Germany and Japan which some says “caused” World War II and how did the Great Depression end, it ended when World War II started. The Great Depression was told to have ended sooner by some economist but one of the leading economist was a man named John Maynard Keynes came up with a theories that said in simple and shorted…show more content…
Now we have taken a look at the effects of keynesian economics in post World War II and cold war, let move on to discuss how the fiscal policy of tax breaks was one of the deciding factors in the post–World War II economic expansion also known as Golden Age of…show more content…
The post World War II was considered an economic growth due to many factors but one of the major factors was the application of Keynesians Economic but however during 1945 - 1970 there a significant amount of recessions. Recessions have many effects that can be seen throughout the country such as unemployments which then can lead to decrease gross domestic product(GDP) which based on investopedia definition is is the monetary value of all the finished goods and services produced within a country 's borders in a specific time period. The National Bureau of Economic Research defined a recession as two or more quarters of decline in real GDP, which real GDP is just the GDP adjusted for price changes such as inflation or deflation. During 1960 - 1961 there was a recession which I concluded by looking at the real GDP during 1960 - 1961 which there is a decrease in real GDP, in the second quarter(Q2) of 1960, Q4 of 1960 and all of 1906. The unemployment rate based on the Bureau of Labor Statistics from the 1960 - 1961 peaked at 7.1% which the 1960s are considered to be a recession because of the decrease in real GDP and the increase in unemployment. Based on the federal reserve during 1950s - 1960s, the Federal Reserve followed a monetary policy that worked toward to keep both inflation and economic growth reasonably stable, this shows that monetary policies can also cause a recession which means that keynesians economics can actually be an economic disaster. This is significant
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