1. For items

(a) through (d), draw a point where each scenario would fall on the business cycle graph shown above.

(a) The Great Depression (Indicate with a letter a.)

(b) The Internet Boom (Indicate with letter b.)

(c) The Great Recession (Indicate with letter c.)

(d) A negative output gap (indicate with letter d.)

(e) In your own words, explain the difference between a positive output gap and a negative output gap.