Question

Describe two similarities and two differences between the United States’ experiences during the Great Depression and the Great Recession financial crisis of 2007–2009.

Answer 1

The great depression was a severe worldwide economic depression that took place mostly during 1930s, begining in the United States.

The great recession refers to the economi downturn from 2007 to 2009 after the brusting of the US housing bubble and the global financial crisis.

Two similarities-

Both ecomonic downturns followed periods of extraordinary business investment, productivity growth, and economic booms. Both downturns also records sharp decline in business investment and stock values over a perod of several years.

Two differance-

In great recession economy only suffered a modest decline in real gross domestic product and the unemployement rate climed around to 6 percent. This is far below the unemployement rate peak of nearly 25 % experianced in great depression. During great depression consumer spending fell sharply but in recession the consumer sector continued to increase spending and helped offset the weakness in the manufacturing sector.