3. Use the graphs in the chapter 11 of the textbook to answer question 2. a. The 2008-09 recession was one of the worst economic downturns in the U.S. since the Great Depression. What was the approximate growth rates of real GDP, consumption and investment in 2009? b. What was the peak unemployment rates after the following recessions: i) 2009 ii) 2020?

FIGURE 9-2 (a) Growth in Consumption Percentage 8 change from 4 quarters Consumption 6 earlier growth 4 W 2 0 -2 1970 1975 1980 1985 1990 1995 2000 2005 Year (b) Growth in Investment Percentage 40 change from Investment 4 quarters 30 growth earlier 20 10 0 -20 -30 -40 1970 1975 1980 1985 1990 1995 2000 2005 Year Growth in Consumption and Investment When the economy heads into a recession, growth in real consumption and investment spending both decline. Investment spending, shown in panel (b), is considerably more volatile than consumption spending, shown in panel (a). The shaded areas represent periods of recession. Source: U.S. Department of Commerce.FIGURE 9-3 Percentage 12 of labor Unemployment force 10 rate 8 6 4 2 0 1970 1975 1980 1985 1990 1995 2000 2005 Year Unemployment The unemployment rate rises significantly during periods of recession, shown here by the shaded areas. Source: U.S. Department of Labor