Chapter 8 - Assignment 1: Recent Macroeconomic Performance

1. Based on these charts, how would you characterize the stage of the business cycle that the U.S. economy has been experiencing over the previous 6 months?
2. The 1990-1991 recession ended in March 1991, but the general public still had a poor perception of the state of the economy into 1992. This perception had an adverse effect on George Bush's presidential candidacy in 1992. What evidence do these graphs provide concerning the lingering perception of a recession? Hint: contrast the performance of the unemployment rate and the level of real GDP during 1991 and early 1992.