Finance
- Cut and paste your graph into a Word document.
- Briefly describe (in words) the evolution of the three variables (in the Word document) over the specified period.
The un rate and CPI variables have a constituent compared to the gross domestic product, it is changing after every quarter as the final years the gross domestic product is higher for 2016 but lower at 2020 as there were more challenges.
- Compare the movements in the three variables during 2008-2009 (and later recovery) to those in the current COVID-19 pandemic. How are they similar? How are they different?
They are similar for the un-rate and CPI variables and does not change during the COVID-19 as it does not change with a greater value. The gross domestic product was not varying different during the first year but when the pandemic hit they change by lowering much to the negative.
- Do the movements in the data fit the theory described in the textbook discussion of the business cycle? Your response should be no longer than the size of seven sentences.
The GDP curve fits as it shows the stages of a business cycle but the CPI and the rate of employment do not fill as the curves seem to be constant. Business cycles are the type of fluctuations found in the aggregate economy of nation activity. A cycle consists of different expansions such as the gross domestic product the rate of employment and the CPI in our case. A recession is a specific vicious cycle with cascading declines in output, employment, income, and sales that are spreading rapidly from industry to industry and region to region. There are different stages in the business which include, expansions, the peak the recession depression, and tough and recovery. The GDP graph fits the business cycle movement as it has a peak that can be recovered. CPI has primary input such as the price and expenditure weight which make it fit.
