3. The accompanying figure shows the annual rate of growth in employment for the United Kingdom and Japan from 1991 to 2010. (The annual growth rate is the percent change in each year’s employment over the previous year.)

Comment on the business cycles of these two economies.

Are their business cycles similar or dissimilar?

Year Annual percent change in employment 3%

2 1

0

–1

–2

–3 1991 1993 1995 1997 1999 2001 2003 2005 2007 20092010 Japan United Kingdom Sources: The Office for National Statistics; The Statistics Bureau of Japan.