Compare and contrast the U.S. economic record prior to 1940 and after 1950 . How do the two time periods differ? What best explains the differences according to a macroeconomist?

The economy experienced business cycles of greater magnitude before 1940 . Cycles after 1950 have been much less extreme. Before 1940, both inflation and deflation occurred. After 1950, inflation was a fairly constant condition and deflation never occurred over a prolonged period. Unemployment rates have been, on the average, much lower during the post-1950 time period. Most economists explain the superior economic performance of the post-1950 period to the use of Keynesian demand management stabilization policies that were implemented after World War II. The economy prior to 1940 could be described as "natural" or unmanaged. The economy after 1950 could be described as actively managed or stabilized.