Macroeconomics (9th Global Edition)
Macroeconomics (9th Global Edition)
9th Edition
ISBN: 9780134141534
Author: Andrew B. Abel, Ben Bernanke
Publisher: Pearson Global Edition
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Chapter 8, Problem 3RQ
To determine

Evidence of the business cycle in the U.S.A. becoming less severe with the passage of time.

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Suppose you are an advisor to the Business Cycle Dating Committee. You are asked to look at macroeconomic data to evaluate whether the economy has entered a recession this year. Which data do you look at? How does the economy behave at the onset of a recession? Explain how unemployment changes over the business cycle. Why do these changes occur?
Economists refer to fluctuations in output as the "business cycle" because movements in output are regular and predictable True/False
Why do economists seek to abstract from the business cycle to focus on long-term secular trends in output?
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