3. Over the last twenty years, the U.S. economy has experiencedits ups and downs, good times and bad times. Using the last twentyyears as an example, answer the following questions:
Using the last twenty years of economic activity, identify thefour stages of the business cycle, citing the periods the U.S.economy went through each stage.
Explain how the levels of unemployment, prices, GDP andindustrial production changed with each stage of the businesscycle. You can use actual data.
What were the responses from the Federal Reserve (MonetaryPolicy) and the Federal Government (Fiscal Policy) over the lasttwenty years.
