Economic Fluctuations, Unemployment, and Inflation
Discuss economic fluctuations, unemployment, and inflation.
List the major phases of the business cycle and indicate how real GDP, employment and unemployment change during these phases. Are the time periods of the business cycle and the duration of the various phases relatively similar and therefore highly predictable? Explain why even an effectively functioning economic system will have some unemployment resources. What is full unemployment? Is the natural rate of unemployment fixed?