Review
Review: The three macroeconomic issues are:
UE (unemployment)IN (inflation)EG (economic growth) Review: The Business CycleUnemployment, inflation and economic growth tend to change cyclically over time. The four phases of the business cycle:1. A peak is when business activity reaches a temporary maximum, unemployment is low, inflation high.2. A recession is a decline in total output, unemployment rises and inflation falls.3. The trough is the bottom of the recession period, unemployment is at its highest, inflation is low.4. expansion (recovery) is when output is increasing, unemployment begins to fall and later inflation begins to rise