Many economists estimate that for every 10% increase in relative minimum wage rates, there is a corresponding decrease in employment of those affected equal to

Answer the following questions:

a. What is meant by the term "business cycle"? b. What economic indicators would indicate where the economy is in the business cycle? Explain. c. Give the four phases of the business cycle in their order of occurrence. d. What criterion must be met for our economy to be officially in a recession?

Based on the experience of the Great Depression and the New Deal, which one of the following strategies would be most likely to stimulate recovery from a serious economic recession?

a. increase trade restrictions and tariffs to save jobs and enhance tax revenue b. a reduction in the money supply in order to strengthen the dollar and combat inflation c. keep taxes low in order to stimulate production and minimize the decline in personal and business income d. institute frequent policy changes in order to search for and find the policy combination that would be most effective