USA HISTORY

Detailed explanation-1: -T The 1980’s began with two recessions in 3 years and then posted the longest peace-time expansion on record. Although growth did slow as the decade came to a close, the service sector still added large numbers of jobs month after month. ‘ Not all industries experienced the prosperity of the 1980’s.

Detailed explanation-2: -The nation’s Gross National Product grew substantially during the 1980s; from 1982 to 1987, the U.S. economy created more than 13 million new jobs. However, an alarming percentage of this growth was based on deficit spending. Under Reagan the national debt nearly tripled.

Detailed explanation-3: -The economic crisis was primarily due to the large and growing fiscal imbalances over the 1980s. During the mid-eighties, India started having the balance of payments problems. Precipitated by the Gulf War, India’s oil import bill swelled, exports slumped, credit dried up, and investors took their money out.

Detailed explanation-4: -Consumer spending increased in response to the federal tax cut. The stock market climbed as it reflected the optimistic buying spree. Over a five-year period following the start of the recovery, GNP grew at an annual rate of 4.2 percent.