asses US economy from 2000-2020

Expert Solution

Us economy growth has not been smooth throughout this period. In some years, the growth has been very high and in some years growth has been negative or very low.

Dot com burst in 2000 and 9/11 attack coupled with the war against the terror led to the economic slowdown and growth rate fell to below the 2 %.

Then gradually growth recovery caused the growth rate moving ahead of the 3 %.

Subprime crisis 2007-8, dragged the growth rate down to the negative. The stimulus packages by the government, increased the growth rate and economy got recovered by the 2015 but the growth or recovery was slow. During the presidentship of Donald Trump, the the US economy witnessee an increase in the growth rate significantly and unemployment rate decreased even below the natural rate of unemployment.

The covid-19 affected the growth rate of economy adversely. It will reduce the growth rate significantly and the impacts on the growth rate would continue over the long run as well. Still the impact of covid-19 are not clear what it will affect the growth rate incredibly.

Rahul Sunny answered 1 year ago

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