Over the last two years, the unemployment rate in Westerlight has risen from 4% to 8%, while GDP growth has been 1.5%. Milo, a citizen of Westerlight, currently doesn’t have a job and although he is actively searching, has been unable to find one. The Business Cycle and the Problem a. What stage of the business cycle is the economy currently in? Blank 1 b. What is the current problem in the economy? Blank 2 c. Does it need money in or out of the economy? Blank 3
Directions:
Use the given scenarios and the information you have learned about Fiscal and
Over the last two years, the
The Business Cycle and the Problem
a. What stage of the business cycle is the economy currently in?
Blank 1
b. What is the current problem in the economy?
Blank 2
c. Does it need money in or out of the economy?
Blank 3
d. What type of monetary policy is that?
Blank 4
e. What type of fiscal policy is that?
Blank 5
f. Doing any of these will
Blank 6
the money supply and availability of credit.
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