The history of the US business cycle (a) Give two examples of a recession in US history where inflation was a problem. (b) Give two examples of a US recession where worsening expectations were the cause. (c) What is the key difference between the monetary policy during the post-covid 2022 and the financial crisis of 2007-2009?
The history of the US business cycle
(a) Give two examples of a recession in US history where inflation was a problem.
(b) Give two examples of a US recession where worsening expectations were the cause.
(c) What is the key difference between the
Introduction
The US business cycle is characterized by alternating periods of growth and contraction in the economy. During the expansion phase, businesses experience increasing consumption and investment, leading to economic growth. This is followed by a contraction phase, where businesses start to slow down and consumption decreases. The business cycle is typically measured in terms of gross domestic product (GDP).
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