The Great Recession Lasted From December Of 2007 Until

The Great Recession lasted from December of 2007 until June of 2009, making it the longest recession since World War II. During this time, gross domestic product (GDP), inflation, unemployment, and interest rates were all greatly affected. The previously mentioned metrics are used to compare today’s economy to the economy during the Great Recession to see how the United States has rebounded since 2009. Monetary and fiscal policies were also implemented to combat the recession, and their effects determine whether or not the policies have a lasting effect in continuing to help the U.S. economy rebound. Metrics Then and Now The most commonly-used metrics to evaluate the growth of the economy are: GDP, inflation, unemployment, and interest†¦show more content†¦1). In 2016, the inflation rate was at 2.07 percent, and as of February 2017 the rate is about .90 percent (â€Å"Inflation Rate,† n.d.). As we can see, the economy has bounced back from its position during the recession. GDP has increased drastically since 2009, unemployment has decreased past its position from 2007, the interest rate has risen, and inflation has also gone up which indicates a strong and healthy economy. Although a higher interest rate is unfavorable for consumers and businesses, it means that the government is confident that the economy will continue to improve. This also means that consumers have enough disposable income to spend on whatever they wish, so the government does not need to lower the rate in order to encourage borrowing and spending. These metrics indicate that the economy has recovered from the Grea t Recession, and is continuing to improve. Monetary and Fiscal Policies Implemented During the Recession Monetary policy is the regulation of the money supply to influence variables such as inflation, employment, and economic growth. Fiscal policies, on the other hand, use the ability to tax and spend in order to influence those same variables (McEachern, 2014, p. 57). 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