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While over the long run, the economy grows about 2 to 3% per year on average,...

While over the long run, the economy grows about 2 to 3% per year on average, over the shorter term, the economy goes through business cycles. Think about the growth rate of GDP, the inflation rate, and the unemployment rate over the last 4 quarters including the Covid-19 period until July. Once you’ve looked at the data, can you draw conclusions about the state of the economy? Would you describe the economy as booming, recovering, or in a recession? Why? Which curve do you think caused the change? Explain your reasoning.

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*the state of the economy is weak demand because of increasing effect of pandemic.aggregate demand is on the declining trend because of unemployment increase.because of pandemic the growth rate has contracted and GDP has declined.

*I would descibe the economy in recesion.aggregate demand curve sloping downwards has caused recession.oil prices have declined to a great extent and because of that aviation sector and other sectors demand has been heavily impacted.because of decrease in GDP,unemployment has decreased to a great extent.currently inflation rate is under 2% all over the world and because of that unemployment has decreased and recession has started.

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