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GDP, employment increase, and inflation increase

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How are factors such as GDP, unemployment, and inflation relative to a buisness cycle? What would be some variations and perspectives from current economic downturns?

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Solution Summary

This solution contextualizes economic facets during a business expansion period of the business cycle as well as economic downturns in ares such as GDP, employment increase, and inflation increase.

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Generally, during a business expansion period of the business cycle, GDP, employment increase, and inflation increase. GDP increases by the fact that business activity increases. The same applies to employment as more jobs are created due to the increased business activity. Inflation also increases as demand increases faster than supply. This imbalance between demand and supply causes prices to increase.

The current economic situation in the US: GDP is growing, but ...

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