Recessions and depressions in American history are marked by significant economic downturns, with the Great Depression (1929-1939) being the most severe, causing widespread unemployment and hardship. Other notable recessions occurred in the 1970s, early 2000s, and the 2008 financial crisis, each influencing policy responses and economic recovery strategies, shaping modern economic frameworks and interventions.

Supply-side economics is a macroeconomic theory advocating that economic growth is most effectively fostered by lowering taxes and decreasing regulation. It posits that reducing barriers for producers leads to increased production, job creation, and overall economic expansion, ultimately benefiting all segments of society.

Economic opportunity cost refers to the potential benefits or profits that are forgone when choosing one option over another. It is the value of the next best alternative that is sacrificed in order to pursue a particular course of action. Understanding economic opportunity cost is essential for making informed decisions in business and personal finance.