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Analysis of business cycle

All semester we have been tracking the economy to discern where it currently resides along the business cycle and where it seems to be headed over the next 6-9 months. Some economists expect the economy will recover soon and begin to grow again. Other economists are concerned which the economy will continue its decline, or at best stagnate. Below is the most recent evidence of the economy. For each argue whether it is indicative of an expanding or slowing economy over the next 6-9 months. Be sure to describe why you think the way you do. Make sure you refer to the concepts we have discussed in the course.

a) The national unemployment rate has increased to 9)5 % in the most recent period.

b) Since mid March, the stock market has rallied and gained about 10% of its value.

c) Consumer spending has continued to decline as households have worked to reduce their consumer debt.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M917190

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