The Recession Caused By 9/11; The Macroeconomic Effects

(Your Name (Professor s Name (Subject (DateThe personal do of 9 /11 on the US economic system : An AssessmentThe terrorist attacks on the World Trade meat and the Pentagon on September 11 , 2001 signaled a turning bill in US storey . The attacks impacted the nation on multiple levels , ranging from the effect on people s moral taste to redefining the country s international relations and major policies . In the months following the attacks , one of the fore intimately areas of fear was the downturn in the US preservation The decline in average real income , add unemployment , and recession within most industries , were widely attri buted to the 9 /11 episode . This aims to present an neutral analysis of the nature and upper limit of the macro economic effects of 9 /11 , fetching into friendliness the existing province of the economy during that period , the major economic areas affected , and the general short bound and great term effects of these factors on recessionExisting State of the Economy in 2001The US economy was undergoing a transition during 2000-2002 . The growth straddle had spike sharply afterwards 1997 , and between1999 and the first half of 2000 the U .S . economy was growing at between 3 and 5 per social class . The unemployment charge per unit at 3 .9 was the net in 30 eld , suggesting excessive demand in the market (Makinen 12 . provided , such growth set up is not sustainable , and the US economy was expected to decline and settle to a lower-growth , but much stable , environment .

But the combine effect of rising oil prices , diminish investment in the sophisticated sector , and the US s ever widening wiliness dearth caused a decline in stock prices and later on affected consumer confidence In to curb inflation buzz off a chance and to diminish gross domestic crossing growth to a more sustainable rate , the national Reserve began to tighten quotation and reduce fire grade on Federal money in 1998 . By primaeval 2001 , the interest rate had dropped 2 pct , clearly indicating the retardent in the economy . The federal interest rate was this instant 4 ? percent , the final level since 1994 The World Economy 35 United States destiny transplant from introductory social class 1997 1998 1999 2000 2001Consumption peaked in 1999-2000 , and therefore increase by yet 2 .7 in 2001 .Consumption 3 .6 4 .7 5 .3 5 .3 2 .7Investment : housing 2 8 .3 6 .4 -0 .5 1Government : manipulation 1 .8 1 .5 2 .1 2 2Investment peaked in 1999 , in 2001 it increased by only 4 .2 from previous year Investment 5 5 8 .8 6 .2 4 .6br Export volumes 12 .3 2 .3 2 .9 9 6 .2Import volumes 13 .7 11 .9 10 .7 13 .5 7 .9Abrupt decrease in gross domestic product growth GDP 4 .4 4 .4 4 .2 5 1 .6Average earnings 2 .4 4 .8 3 4 .3 4 .8Private consumption deflator 1 .9 1 .1 1 .8 2 .4 2 .1 Increase in unemployed Unemployment 4 .9 4 .5 4 .2 4...If you want to stay a full essay, relieve oneself it on our website: Ordercustompaper.com

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