https://www.youtube.com/watch?v=otmgFQHbaDo&t=503s

1. Business cycles can wreak havoc in the economy and create real economic hardship. Remember, the three indicators to keep your eye on are the unemployment rate, the rate of inflation and the GDP growth rate. At the peak of the business cycle, which economic indicator is the most worrisome? How about in the trough?

2. How would you use the three tools of fiscal policy when the economy is in a recession?

3. How would you use the three tools of fiscal policy when the economy is in an inflationary gap? Be specific.