Review what you have learned about business cycles, GDP, unemployment, CPI, monetary policy, and fiscal policy and respond to the following:

1. 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.
2. How was fiscal and monetary policy used to reduce the recessionary gap? Be sure to provide specific examples.
3. What were the expected benefits of the policies adopted? What were the potential costs of the policies adopted?
4. What phase of the business cycle is our economy currently in? Be sure to use current aggregate statistics to support your answer.