While over the long run, the economy grows about 2 to 3% per year on average,...

While over the long run, the economy grows about 2 to 3% per year on average, over the shorter term, the economy goes through business cycles. Think about the growth rate of GDP, the inflation rate, and the unemployment rate over the last 12 months. What conclusions about the state of the economy? Would you describe the economy as booming, recovering, or in recession during the last few years? Why? Use the AD-AS model to describe the economy. Which curve do you think caused the change? Explain your reasoning.

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Rahul Sunny answered 2 years ago

While over the long run, the economy grows about 2 to 3% per year on average,...

While over the long run, the economy grows about 2 to 3% per year on average, over the shorter term, the economy goes through business cycles. Think about the growth rate of GDP, the inflation rate, and the unemployment rate over the last 4 quarters including the Covid-19 period until July. Once you’ve looked at the data, can you draw conclusions about the state of the economy? Would you describe the economy as booming, recovering, or in a recession? Why?...

While over the long run, the economy grows about 2 to 3% per year on average,...

While over the long run, the economy grows about 2 to 3% per year on average, over the shorter term, the economy goes through business cycles. Think about the growth rate of GDP, the inflation rate, and the unemployment rate over the last 4 quarters including the Covid-19 period until July. Once you’ve looked at the data, can you draw conclusions about the state of the economy? Would you describe the economy as booming, recovering, or in a recession? Why?...

Write about 300 words: While over the long run, the economy grows about 2 to 3%...

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While over the long run, the economy grows about 2 to 3% per year on average,...

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While over the long run, the economy grows about 2 to 3% per year on average,...

While over the long run, the economy grows about 2 to 3% per year on average,...

Write about 300 words: While over the long run, the economy grows about 2 to 3%...

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