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Define business cycle and explain the concepts of expansion and recession


  1. Define business cycle and explain the concepts of expansion and recession

  2. Identify (plot out) using Gapminder World the business cycle for the U.S. and any other country of your choice (in the same graph). [Take a screen shot of your graph for submission]

  3. Show that you have a deeper understanding of your graph in 2. Is the U.S. better off or worse off in terms of GDP compared to the other country of your choice?

  4. Enumerate 3 possible reasons why the depiction in answer 2 may not represent the relative wellbeing of people in the U.S. compared to the other country of your choice. [See limitations to using GDP as a measure of wellbeing]

  5. Assess your response in 4 using 2 variables (any 2 variables you desire) from Gapminder World to support your answer in 4. Again show the graph for the U.S. and the other country of your choice [be creative].

  6. Scrutinize how could the U.S. achieve higher economic growth?


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