Final answer:
In recent years, the U.S. has experienced low inflation and low unemployment, contrasting with the period from 1900 to 1970, which saw low inflation but high unemployment. Recessions typically involve higher unemployment and lower inflation, while economic growth often brings lower unemployment and higher inflation.
Step-by-step explanation:
In recent years, the U.S. economy has had low inflation and low unemployment; while from 1900 to 1970, the U.S largely had low inflation and high unemployment. This can be elaborated by looking at different periods where the rate of inflation was typically around 2% to 4% in the last two decades.
However, the periods of highest inflation occurred during the years after World Wars I and II, and notably in the 1970s, which was marked by the term "stagflation" due to simultaneous occurrence of high inflation and unemployment. The lowest inflation period, with actual deflation, was during the Great Depression of the 1930s.
Recessions such as those in the early 20th century, the early 1980s, and the Great Recession of 2008-2009 were characterized by higher unemployment and lower inflation. Conversely, periods of strong economic growth like after the World Wars and during the 1960s had lower unemployment but higher inflation. The unusual case of stagflation in the 1970s, with both high inflation and unemployment, was a significant outlier that challenged traditional economic models.