Review what you know about business cycles, GDP, unemployment, CPI, monetary policy, and fiscal policy and respond to the following:
- How did GDP, unemployment, and the cost of living change during the last recession? Be sure to provide aggregate statistics from the appropriate government sources.
- How was fiscal and monetary policy used to reduce the recessionary gap?Be sure to provide specific examples.
- What were the expected benefits of the policies adopted? What were the potential costs of the policies adopted?
- What phase of the business cycle is our economy currently in? Be sure to use current aggregate statistics to support your answer.