1. LO1 Identify the four phases of the business cycle and explain the primary characteristics of recessions and expansions.
2. LO2 Use potential output and the output gap to analyze an economy's position in the business cycle.
3. LO3 Define the natural rate of unemployment and show how it is related to cyclical unemployment.
4. LO4 Apply Okun's law to analyze the relationship between the output gap and cyclical unemployment.
5. LO5 Discuss the basic differences between how the economy operates in the short run versus the long run.