Question

Please Help answering both questions

1. Think about the business cycle; What are the parts of the business cycle? How does each part of the business cycle impact employment?


2. Think about economic indicators; What is GDP and how does it show if an economy is doing well or poorly? Describe two ways that a GDP shows overall whether an economy is doing well or poorly.

Answer 1

Step-by-step explanation:

An economic cycle, also referred to as a business cycle, has four stages: expansion, peak, contraction, and trough.

Unemployment increases during business cycle recessions and decreases during business cycle expansions (recoveries). If the equilibrium level of output is less than the full employment level as illustrated on the graph above, this indicates that some available resources are unemployed and less is being produced.

GDP is important because it gives information about the size of the economy and how an economy is performing. The growth rate of real GDP is often used as an indicator of the general health of the economy. In broad terms, an increase in real GDP is interpreted as a sign that the economy is doing well.

How can you tell if the economy is doing well or badly? GDP - or economic growth. This is a measure of all the goods and services produced in a country over a period of time, for example, a year. An increase means the economy is growing.

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