AP Macroeconomics Mea 2 A a Define Using Graphs and Data As Appropriate Turning Points and Phases of the Business Cycle B Explain Using Graphs and Questions

Identify business-cycle phases and turning points, then distinguish recessionary and inflationary gaps using actual and potential output.

Exam points

identify expansion, peak, recession and trough in sequence or on a business-cycle graph
explain how real output, employment and inventories typically change in expansion or recession
classify recessionary, inflationary or zero output gaps by comparing actual with potential output
relate actual unemployment to the natural rate at recessionary gaps, inflationary gaps and full employment

[Maximum number: 1]

Assume that in the country of Zeta, the civilian noninstitutional population aged 16 and over is 1,000,000. The labor force participation rate is 70%, the unemployment rate is 9%, and the natural rate of unemployment is 5\%.

Is the economy of Zeta currently experiencing a recessionary gap, an inflationary gap, or no output gap? Explain.

All question bank results loaded

AP Macroeconomics Mea 2 A a Define Using Graphs and Data As Appropriate Turning Points and Phases of the Business Cycle B Explain Using Graphs and Questions question 1