When the veil of inflation is stripped away 
102 
100 
99 
98 
awaHiM 
This is the worst and longest recession 
in a quarter of a century 
1957-51T 
1960-61 
4. 
rw- —■ 
/ X '*Ss 
7 J 
, ^ v / 
\ 
£53-54 
Real gross 
national product 
1974-75 
I L 
1 1 11 
A Index: peak quarter ss 100 
Quarters after peak 
Consumers have been cutting spending since 
mid-1973, companies since mid-1974.. 
470 
97 
93 
89 
85 
81 
77 
73 
.V ' ■■■' i~ ■ f . 
■>?' • 
A'4f*r- «•■ 
'■ 
< ■■•‘-■'V / • ; • V 
-——7—^ RmI to*m •• . , 
T ^ equipment. -• 
— / ^ .• 
TJL. 
‘H’ 1 ' • 
i i r^t 
*0***^^ mt ^ I ’■'* . *.' 1 '-*V» 
f 1 1 r f 1 :.\ Ai r L i. 
1 1 r , L 
l II III IV | 
1970 I 
1 11 111 iv IT if ill iv 1 » li 111 iv 
1971 I 1972 * I * 1973 
1 11 nf TV 
1974 
A Billions of 1958 dollars 
Data: Commerce Dept , Federal Reserve Board, BW est 
incmS 
&*Si#Jnemplqyment rate 
iiiil 
r .8B*’£ ; f \ 'fig-<i(5e k«Hl ^t^3_MJLa5L-j8L^»bf_‘4roL^^ A" jlM'iH -’‘Wt nlni ^llBliiWfjBiQtlw8|gBwrl. • I 
i i flVjl llltl IVII M I III v] « 11 (111 Vjl HIUI v] f ill 11 IVj I i I lllivll il lllivll II III IVl I N III IVI I II Mil 
>4 1 1965 * 1966 1 1967 1 1968 * 1969 1 1970 1 1971 * 197? 1 1973 1 1974 E 
1961 
Inflation and unemployment: There’s no longer a trade-off 
▲ Percent 
'Quarterly change in Consumer Price Index at annual rate 
J 
Duta: Labor Dept., BW est.