Some economists claim World War II ended the Great Depression of the 1930s. The war effort was financed by borrowing massive sums of money from the public. Explain how a war could end a recession. Look at recent and back issues of the Economic Report of the President or the Statistical Abstract of the United States. How large was the federal government’s debt as a percentage of GDP in 1946? How large is it today?

Some economists claim World War II ended the Great Depression of the 1930s. The war effort was financed by borrowing massive sums of money from the public. Explain how a war could end a recession. Look at recent and back issues of the Economic Report of the President or the Statistical Abstract of the United States. How large was the federal government’s debt as a percentage of GDP in 1946? How large is it today?

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter17: Stabilizing The National Economy

Section: Chapter Questions

Problem 23AA

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