tailieunhanh - Economic Recovery: Sustaining U.S. Economic Growth in a Post-Crisis Economy

As output decreased the unemployment rate increased, rising from in 2007 to a peak of in October 2009, and remaining only slightly below that high into 2011. The . unemployment rate has not been at this level since 1982, when in the aftermath of the 1981 recession it reached , the highest rate of the post-war period. (During the Great Depression the unemployment rate reached 25%.) This rise in the unemployment rate translates to about 7 million persons put out of work during the recession. Another million workers have been pushed involuntarily into part-time employment. . | Economic Recovery Sustaining . Economic Growth in a Post-Crisis Economy Craig K. Elwell Specialist in Macroeconomic Policy November 29 2012 Congressional Research Service 7-5700 R41332 CRS Report for Congress------------- Prepared for Members and Committees of Congress Economic Recovery Sustaining . Economic Growth in a Post-Crisis Economy Summary The 2007-2009 recession was long and deep and according to several indicators was the most severe economic contraction since the 1930s but still much less severe than the Great Depression . The slowdown of economic activity was moderate through the first half of 2008 but at that point the weakening economy was overtaken by a major financial crisis that would exacerbate the economic weakness and accelerate the decline. Economic recovery began in mid-2009. Real gross domestic product GDP has been on a positive track since then although the pace has been uneven and slowed significantly in 2011. The stock market has recovered from its lows and employment has increased moderately. On the other hand significant economic weakness remains evident particularly in the balance sheet of households the labor market and the housing sector. Congress was an active participant in the policy responses to this crisis and has an ongoing interest in macroeconomic conditions. Current macroeconomic concerns include whether the economy is in a sustained recovery rapidly reducing unemployment speeding a return to normal output and employment growth and addressing government s long-term debt problem. In the typical post-war business cycle lower than normal growth during the recession is quickly followed by a recovery period with above normal growth. This above normal growth serves to speed up the reentry of the unemployed to the workforce. Once the economy reaches potential output and full employment growth returns to its normal growth path where the pace of aggregate spending advances in step with the pace of aggregate supply. .