The Rates Of 2007-2009 And The Inflation From 2002-2007

The periods that I researched were the periods between the unemployment rates of 2007-2009 and the inflation from 2002-2007. There were many causes to the inflation in the 2002-2007. Similarly, there were quite a few causes to the unemployment rate of 2007-2009. The business cycle looks like a roller coaster. It begins at a peak, drops to a bottom, climbs steeply, and then reaches another peak. Through a typical business cycle there is an increase in the general price level of goods and services in an economy over a period of time which leads to inflation. There are also decreases in the general price level of goods and services in an economy over a period of time. A peak in the business cycle is a temporary high point. A macro†¦show more content†¦One of the most widely recognized indicators of a recession is higher unemployment rates. According to the National Bureau of Economic Research, â€Å"In December 2007, the national unemployment rate was 5.0 percent, and it had been at or below that rate for the previous 30 months. At the end of the recession, in June 2009, it was 9.5 percent†. Of course unemployment is based on many factors which include those who are without jobs and are actively seeking jobs, but does not include those who are discouraged workers. Many other factors also contribute to who is termed as unemployed civilians. A recession is a downturn in the business cycle during which real GDP declines, business profits fall, the percentage of the workforce without jobs rises, and capacity of production is underutilized. The employment decline experienced between the 2007 and 2009 recession was greater than that of any recession of recent decades. The construction and manufacturing industries seen the largest percentage of declines in employment between 2007 and 2009. During the recent recession financial institutions experienced a 3.9-percent reduction in employment as well. This is very uncommon and has not been seen since the 1990s. Prior to that was 1939. During the recession periods of 2007 and 2009, the private sector experienced a total of 235,000 establishment deaths and 172,000 establishment births resulting in a net decrease of