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Showdown in europe

The lack of consensus with the Soviets on the future of Germany led the United States, Great Britain, and France to support joining their respective occupation zones into a single, independent state. In December 1946, they took steps to do so, but the Soviet Union did not wish the western zones of the country to unify under a democratic, pro-capitalist government. The Soviet Union also feared the possibility of a unified West Berlin, located entirely within the Soviet sector. Three days after the western allies authorized the introduction of a new currency in Western Germany—the Deutsche Mark—Stalin ordered all land and water routes to the western zones of the city Berlin to be cut off in June 1948. Hoping to starve the western parts of the city into submission, the Berlin blockade was also a test of the emerging U.S. policy of containment.

Unwilling to abandon Berlin, the United States, Great Britain, and France began to deliver all needed supplies to West Berlin by air ( [link] ). In April 1949, the three countries joined Canada and eight Western European nations to form the North Atlantic Treaty Organization (NATO), an alliance pledging its members to mutual defense in the event of attack. On May 12, 1949, a year and approximately two million tons of supplies later, the Soviets admitted defeat and ended the blockade of Berlin. On May 23, the Federal Republic of Germany (FRG), consisting of the unified western zones and commonly referred to as West Germany, was formed. The Soviets responded by creating the German Democratic Republic, or East Germany, in October 1949.

Photograph (a) shows a row of C-47 transport planes awaiting takeoff. Photograph (b) shows a crowd of German men, women, and children watching as a plane above them prepares to land.
American C-47 transport planes (a) are loaded with staged supplies at a French airport before taking off for Berlin. Residents of Berlin wait for a U.S. plane (b) carrying needed supplies to land at Templehof Airport in the American sector of the city.

Containment at home

In 1949, two incidents severely disrupted American confidence in the ability of the United States to contain the spread of Communism and limit Soviet power in the world. First, on August 29, 1949, the Soviet Union exploded its first atomic bomb—no longer did the United States have a monopoly on nuclear power. A few months later, on October 1, 1949, Chinese Communist Party leader Mao Zedong announced the triumph of the Chinese Communists over their Nationalist foes in a civil war that had been raging since 1927. The Nationalist forces, under their leader Chiang Kai-shek, departed for Taiwan in December 1949.

Immediately, there were suspicions that spies had passed bomb-making secrets to the Soviets and that Communist sympathizers in the U.S. State Department had hidden information that might have enabled the United States to ward off the Communist victory in China. Indeed, in February 1950, Wisconsin senator Joseph McCarthy, a Republican, charged in a speech that the State Department was filled with Communists. Also in 1950, the imprisonment in Great Britain of Klaus Fuchs, a German-born physicist who had worked on the Manhattan Project and was then convicted of passing nuclear secrets to the Soviets, increased American fears. Information given by Fuchs to the British implicated a number of American citizens as well. The most infamous trial of suspected American spies was that of Julius and Ethel Rosenberg, who were executed in June 1953 despite a lack of evidence against them. Several decades later, evidence was found that Julius, but not Ethel, had in fact given information to the Soviet Union.

Questions & Answers

it is the relatively stable flow of income
Chidubem Reply
what is circular flow of income
Divine Reply
branches of macroeconomics
SHEDRACK Reply
what is Flexible exchang rate?
poudel Reply
is gdp a reliable measurement of wealth
Atega Reply
introduction to econometrics
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Tom
Why is unemployment rate never zero at full employment?
Priyanka Reply
bcoz of existence of frictional unemployment in our economy.
Umashankar
what is flexible exchang rate?
poudel
due to existence of the pple with disabilities
Abdulraufu
the demand of a good rises, causing the demand for another good to fall
Rushawn Reply
is it possible to leave every good at the same level
Joseph
I don't think so. because check it, if the demand for chicken increases, people will no longer consume fish like they used to causing a fall in the demand for fish
Anuolu
is not really possible to let the value of a goods to be same at the same time.....
Salome
Suppose the inflation rate is 6%, does it mean that all the goods you purchase will cost 6% more than previous year? Provide with reasoning.
Geetha Reply
Not necessarily. To measure the inflation rate economists normally use an averaged price index of a basket of certain goods. So if you purchase goods included in the basket, you will notice that you pay 6% more, otherwise not necessarily.
Waeth
discus major problems of macroeconomics
Alii Reply
what is the problem of macroeconomics
Yoal
Economic growth Stable prices and low unemployment
Ephraim
explain inflationcause and itis degre
Miresa Reply
what is inflation
Getu
increase in general price levels
WEETO
Good day How do I calculate this question: C= 100+5yd G= 2000 T= 2000 I(planned)=200. Suppose the actual output is 3000. What is the level of planned expenditures at this level of output?
Chisomo Reply
how to calculate actual output?
Chisomo
how to calculate the equilibrium income
Beshir
Criteria for determining money supply
Thapase Reply
who we can define macroeconomics in one line
Muhammad
Aggregate demand
Mohammed
C=k100 +9y and i=k50.calculate the equilibrium level of output
Mercy Reply
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money as unit of account means what?
Kalombe
A unit of account is something that can be used to value goods and services and make calculations
Jim
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Muhammad
I want to know how can we define macroeconomics in one line
Muhammad
it must be .9 or 0.9 no Mpc is greater than 1 Y=100+.9Y+50 Y-.9Y=150 0.1Y/0.1=150/0.1 Y=1500
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hi can someone help me on this question If a negative shocks shifts the IS curve to the left, what type of policy do you suggest so as to stabilize the level of output? discuss your answer using appropriate graph.
Galge Reply
if interest rate is increased this will will reduce the level of income shifting the curve to the left ◀️
Kalombe
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Source:  OpenStax, U.s. history. OpenStax CNX. Jan 12, 2015 Download for free at http://legacy.cnx.org/content/col11740/1.3
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