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Economics Lets say over the past year actual unemployment for an economy has risen from 4.5% to 8.5%. In that same time, investments by firms
Economics
Lets say over the past year actual unemployment for an economy has risen from 4.5% to 8.5%. In that same time, investments by firms has fallen. Finally, this economy has a natural unemployment rate of 5.5%. Based on this information, in paragraph form, please describe the current phase of the business cycle for this economy. Other things being equal, using the equation of cyclical unemployment, is this economy currently above or below the GDP Trend Line in the business cycle. Why
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