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What does a positive index mean

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Assignment: 1. Define a business cycle

2. Identify 3 key economics variables that are used to characterize a business cycle.

3. Based upon the 3 key economic variables, what are the characteristics of a recession?

4. According to the NBER, when did the recessions of (1981-1982) and (2007-2009) begin and end?

5. What is the National Activity Index?

a. What does a positive index mean?

b. What does a negative index mean?

c. Explain how the NAI is used to determine a recession.

6. What is the yield curve?

a. Explain how the yield curve can be used to forecast a recession.

7. Compare and contras the recession of 1981-1982 with the recession of 2007-2009 with a detailed examination of the percentage change in Real GDP, the unemployment rate and the inflation rate.

8. Compare and contrast the number of jobs created four years into the recovery phase of each recession. Which recovery created more jobs?

Reference no: EM132440369

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