1. LO1Identifythefourphasesofthebusinesscycleandexplaintheprimarycharacteristicsofrecessionsand expansions.
2. LO2Usepotentialoutputandtheoutputgaptoanalyzeaneconomy'spositioninthebusinesscycle.
3. LO3Definethenaturalrateofunemploymentandshowhowitisrelatedtocyclicalunemployment.
4. LO4ApplyOkun'slawtoanalyzetherelationshipbetweentheoutputgapandcyclicalunemployment.
5. LO5Discussthebasicdifferencesbetweenhowtheeconomyoperatesintheshortrunversusthelongrun.