Question

After the conclusion of the 1991 recession, the unemployment rate generally ______________ throughout the 1990s.


An increase in__________can help explain this change in unemployment and the positive growth in the 1990s.

Answer 1

Answer:

Lowered throughout 1990 s; labor force participation rate

Explanation:

The recession of 1990-1991 which lasted for 8 months elevated unemployment rate to 8.1% in 1992, but following 1990 s expansion fell to 4.6% in 2001. Increase in labor force participation, mainly with Baby Boomers generation, which was in its prime ( ages between 37 and 55 in 2001) lead to positive growth in the 90 s. There were numerous other reasons like:

1. significantly lower oil prices between mid-to-late 1990 s
2. reform of welfare system, which significantly reduced the time users can receive aid
3. more egalitarian tax structure
4. job growth associated with informational technology revolution