Answered: business cycle

Business

Economics

business cycle

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter12: Business Cycles And Unemployment

Section: Chapter Questions

Problem 3SQ

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Question

100%

The three indicators to keep your eye on are the unemployment rate, the rate of inflation and the GDP growth rate. At the peak of the business cycle, which economic indicator will enter the “danger zone”? How about in the trough?

Definition Definition State in which an individual is without work, despite actively seeking employment opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed. Unemployment is one of the key indicators of the conditions prevailing in an economy. It is therefore considered a barometer that points out the condition of an economy.

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