Lets sum up some basic facts about the link between unemployment rates and recessions. Notice that the
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Let’s sum up some basic facts about the link between unemployment rates and recessions. Notice that the shaded bars indicate periods of recession, and wider bars mean longer recessions.
a. How many recessions have there been since World War II?
b. Since World War II, how many recessions had unemployment rates of over 10%?
c. Often, the unemployment rate seems to peak after the recession ends: The economy goes back to growing while the unemployment rate rises for a while. As the figure shows, the recessions of 1990 and 2001 have been clear examples of such “jobless recoveries.” Approximately how many times did the unemployment rate peak after the recession ended?
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