Homework A) GRAPH THE BUSINESS CYCLE The boxes below list data by quarter for one complete United States business cycle. Graph all three of the measures of economic performance on the same graph (real GDP, unemployment, and inflation). The years are on the horizontal axis, the real GDP is on the left vertical axis, and the percentages for unemployment and inflation are on the right vertical axis. If possible, use a different color pen or pencil for each set of data. 2005 41 43 44 2006 41 44 1007 43 44 2008 q3 44 GOP 12.515 12,571 12671 12,736 12,896 12,949 12,950 13,038 13,056 13,174 13,270 13,326 13,267 13,311 13,187 12,884 5.2 5.0 5.0 5.B I.6 2005 q1 43 q4 2010 44 101 1 q4 2012 GOP 12,711 12,301 12747 12,873 12,948 13,020 13,104 13,181 13,184 1 13,265 13,307 13.441 13,506 13.549 13,653 13.648 TH 1 010 LI 19 One U.S. Business Cycle 13,800 12 % 13,600 10 13,400 13,200 13,000 Unemployment and Inflation Rates Real GDP (billions of dollars) 12,800 12,600 12,400 2 12,200 2005 2008 2007 2008 2009 2010 2011 2012 Year $ ECONOMICS Copyright Danny N.5. PAGE I1) When was the relative maximum real GDP during this cycle? When was the relative minimum? 2) When was the maximum unemployment during this cycle? When was the minimum? When was the maximum inflation during this cycle? When was the minimum? () What correlation, if any does this business cycle show between real GDP and unemployment? ") What correlation, if any does this business cycle show between real GDP and inflation? " What correlation, if any does this business cycle show between unemployment and inflation? 7) Which indicator seems to fluctuate the most chaotically? ") What long-term trend do you notice from the real GDP graph