Economy after 1945 - AP U.S. History
- What was the effect of deregulation in the 1980s?
- Reduced government intervention in industries. Removed price controls and barriers to market competition.
- Identify the main economic impact of Vietnam War.
- Increased government spending and inflation. War costs strained federal budget and overheated economy.
- What economic practice grew post-1945?
- Credit and installment buying. Easy payment plans made expensive goods affordable.
- What was the economic role of the Federal Reserve post-1945?
- Regulating monetary policy and interest rates. Central bank controlled money supply and inflation.
- What was the government's response to the 2008 crisis?
- Bank bailouts and stimulus packages. Government intervention prevented financial system collapse.
- What was a major economic effect of the Cold War?
- Increased defense spending. Military-industrial complex drove government expenditures upward.
- Which economic policy did Clinton pursue in the 1990s?
- Fiscal conservatism with social investments. Balanced budgets while maintaining social programs.
- What was the economic impact of the GI Bill on the US?
- Increased educational attainment and home ownership. Veterans received college funding and low-interest home loans.
- What is the significance of the Bretton Woods system post-1945?
- Established international monetary order. Fixed exchange rates and dollar as global reserve currency.
- Identify the US economic condition in the early 1990s.
- Recession followed by a tech-driven recovery. 1990-91 recession ended with technology-led economic expansion.
- Identify the main cause of the 2008 financial crisis.
- Subprime mortgage lending and housing bubble. Risky loans to unqualified borrowers inflated housing prices.
- What key economic legislation did Reagan implement?
- Tax cuts and deregulation. Reduced corporate and individual tax rates while removing regulations.
- Which trade agreement was signed in 1994?
- NAFTA (North American Free Trade Agreement). Eliminated tariffs between US, Canada, and Mexico.
- What economic event occurred in the early 2000s?
- Dot-com bubble burst. Overvalued internet companies crashed, causing economic downturn.
- Identify a key feature of the Affordable Care Act.
- Expansion of healthcare coverage. Extended insurance access to previously uninsured Americans.
- How did consumer culture change post-1945?
- Rise of mass consumerism and advertising. Television and suburban lifestyle fueled purchasing patterns.
- What is the concept of 'Reaganomics'?
- Economic policies of tax cuts, deregulation, and increased defense spending. Reagan's approach to stimulate growth through supply-side measures.
- What policy did the Federal Reserve use to combat 1970s inflation?
- Raising interest rates. High interest rates reduced borrowing and cooled the economy.
- Which economic theory guided Reagan's 1980s policies?
- Supply-side economics. Theory that tax cuts stimulate economic growth through investment.
- What was the primary economic system in the US post-1945?
- Mixed economy combining capitalism and government intervention. Blended free market principles with New Deal-era regulatory frameworks.
- What major economic change occurred in the 1970s?
- Transition from manufacturing to service economy. Deindustrialization shifted jobs from factories to service sectors.
- Identify a primary goal of post-1945 US economic policy.
- Sustained economic growth. Keynesian economics aimed to maintain full employment.
- Which legislation reformed financial regulation post-2008?
- Dodd-Frank Act. Strengthened oversight of banks and financial institutions.
- What was the economic effect of technological advancements post-1945?
- Increased productivity and automation. Machines replaced workers while boosting overall output.
- What was a primary cause of suburbanization post-1945?
- Affordable housing and automobile ownership. Mass production made homes and cars accessible to middle class.
- What was a major economic trend of the 1990s?
- Expansion of technology and internet industries. Personal computers and internet transformed business operations.
- What economic trend characterized the 1990s?
- Economic globalization and trade expansion. Free trade agreements and multinational corporations expanded.
- What was the effect of oil embargoes in the 1970s on the US economy?
- Increased energy prices and economic recession. OPEC actions caused fuel shortages and economic slowdown.
- Identify the economic term for 1970s high inflation and unemployment.
- Stagflation. Unusual combination of rising prices and rising unemployment.
- What was a major driver of the 1990s US economic expansion?
- Information technology boom. Personal computers and internet created new industries.
- How did the US economy change in the 1980s?
- Shift towards a service-oriented economy. Manufacturing jobs declined as service sector expanded.
- What economic challenge did the US face in the 2010s?
- Income inequality. Gap between rich and poor widened significantly.
- Identify the main economic policy initiative of the 1950s.
- Eisenhower's Interstate Highway System. Created 41,000 miles of highways, boosting construction and commerce.
- Which sector experienced significant growth in the US after 1945?
- The service sector. Manufacturing declined while services like finance and retail expanded.
- What was the impact of globalization on the US economy?
- Job outsourcing and increased trade. Manufacturing jobs moved overseas while trade volume increased.
- What was the impact of the Marshall Plan?
- Economic recovery in Europe, benefiting US exports. Rebuilt European markets created demand for American goods.
- Which economic crisis impacted the US in the 1970s?
- Energy crisis. Oil shocks caused fuel shortages and economic stagnation.
- Which sector led the US economic recovery post-2008?
- Technology sector. Innovation companies drove job creation and stock market growth.
- What is the economic significance of Silicon Valley?
- Hub of technology and innovation. Became global center for computer and internet companies.