Questions:

Examine the unemployment rate and real GDP charts provided by Economagic.com.

1. Use these graphs to determine the stage of the business cycle that the U.S. is currently experiencing. Explain your response.
2. Your text notes that the 1990-1991 recession ended in March 1991, but the perception of "bad economic times" lingered into 1992. What evidence do these graphs provide concerning the lingering perception of a recession? Hint: contrast the performance of the unemployment rate and the level of real GDP during 1991 and early 1992.