When we move from talking about stages of the economy, the terms used to describe the business cycle differ slightly, but you will see that they are almost mirror images of the economic stages. It also passed the Emergency Immigration Act to restrict the number of immigrants to 3% of the 1910 population. The U.S. Supreme Court revoked the minimum wage for women in Washington, D.C. There were plenty of economic contractions during the “Roaring Twenties.” The first contraction began in January 1920. One reason was the high maximum income tax rate of 73% on incomes more than $1 million.

The newly opened regions had few roads, but a very good river system in which everything flowed downstream to New Orleans. With the coming of the steamboat after 1815, it became possible to move merchandise imported from the Northeast and from Europe upstream to new settlements. The opening of the Erie Canal made Buffalo the jumping off point for the lake transportation system that made important cities out of Cleveland, Detroit, and especially Chicago. States built roads and waterways, such as the Cumberland Pike and the Erie Canal , opening up markets for western farm products.

C) the tendency of many economic variables to move together in a predictable way over the business cycle. D) the idea that peaks and troughs of the business cycle occur at regular intervals. Comovement is A) the tendency for declines in economic activity to be followed by further declines, and for growth in economic activity to be followed by more growth. After the Democrats gained over fifty seats in the how does gail demonstrate that she is a business ally? House of Representatives during the 1930 elections, Hoover belatedly agreed to fund some public works projects. He also agreed to provide unprecedented loans to keep banks and other financial firms from going bankrupt. Despite Hoover’s activism, sincerity of purpose, and a work schedule that allowed him only a few hours for sleep, the economy continued to decline throughout the election year of 1932.

The greatest burden was borne by the soldiers of the Continental Army, whose wages—usually in arrears—declined in value every month, weakening their morale and adding to the hardships suffered by their families. Stockbrokers began allowing customers to buy stocks “on margin.” Investors only needed to put down 10-20% of the price of a stock and brokers would lend them the remaining 80-90%. Buying on margin enabled investors to purchase more stock than they could previously afford and, subsequently, realize higher gains if the stock price went up. This same innovation became a weakness when stock prices fell during the1929 stock market crash.

Industry and business leaders such as automobile manufacturer Henry Ford were not the only ones to adopt Taylor’s ideas. They were also applied in areas of education, medicine, and the military. By the time of Taylor’s death in 1915 scientific management was the dominant trend and it would remain so throughout much of the twentieth century.

To maintain profitability in a changing economic climate, American companies in industries as diverse as oil refining to whiskey distilling began to emerge in the late 19th century. These new corporations, or trusts, were exploiting a strategy known as horizontal combination, which granted those corporations the ability to limit production in order to raise prices and maintain profitability. But these corporations regularly ran into legal trouble as violations of the Sherman Antitrust Act. To gauge the level of goods to be produced in the future , economists look at a statistic called average weekly manufacturing hours. This measure tells us the average number of hours worked per week by production workers in manufacturing industries. For assessing the strength of the housing market, building permits is often a good indicator.

The contest regarding federal support for health care programs for women and infants personifies the transition from Progressivism to more conservative ways of thought regarding the role of government. This transition from Progressivism to conservatism was one of the leading dynamics of the 1920s. On a broader front, the economy initially recovered at a brisk pace from the 1973–75 recession. Incoming president Jimmy Carter instituted a large fiscal stimulus package in 1977 in order to boost the economy. However, inflation began a steep rise beginning in late 1978, and rose by double digits following the 1979 energy crisis. In order to combat inflation, Carter appointed Paul Volcker to the Federal Reserve, who raised interest rates and caused a sharp recession in the first six months of 1980.