Assignment:
Read the two articles below and do some of your own research on current macro-economic conditions and the business cycle. National economic data are available from the U.S. Department of Commerce, Bureau of Economic Analysis www.bea.gov
Yellen, Janet L. "Prospects for the Economy in 2008," Economic Letter, Federal Reserve Bank of San Francisco, Accessed February 8, 2008.
"Economics focus: Beyond the business cycle?" The Economist London, October 23, 1999.
In a 2 page double spaced paper, please focus on the following questions.
Question 1. The U.S. has not experienced a recession since 2001. Define a recession and indicate whether you think another one is on the horizon? If yes, give your reasons for why a recession might occur. If you are an optimist, why do you think another recession is not on the way? Use the Yellen article as a foundation for your report.
Question 2. Pick two factors cited in The Economist article that you think will have the most impact on future business cycles. Explain why they are important and whether you think they will contribute to more severe or less severe business cycles.
Question 3. Do you think the business cycle is dead? Why or why not?