PROBLEMS 1. What information would need to be gathered in order to assess the economy's current position within the business cycle? 2. Describe the four stages of the business cycle. 3. How is a recession typically measured? 4. What are the four key components of gross domestic product? 5. What are the three goals of the Federal Reserve? 6. Why is low and steady inflation important? 7. What is deflation? 8. Describe the two hypotheses that explain the shape of the yield curve. 9. Describe the three shapes of the yield curve that tend to be associated with different business cycle stages. 10. Compare the typical profitability of a stage 2 firm versus a stage 3 firm 11. Describe Porter's Five Forces that govern the competition within an industry. Compare and contrast the Porter analysis for the utilities industry and for the jewelry industry (part of the consumer discretionary industry). 12. Develop a list of key success factors in the auto manufacturing industry, 13. Develop a list of factors that would result in a firm having high supply risk and high demand risk