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Unformatted text preview: decreases in employment, production and prices. A downturn in the business cycle is known as a recession, which effects the ability of workers to hold and find jobs. This article shows how the current recession has made it difficult to find employment, as well as lowering the overall well being of the American family and lowering the average income. As the graph below indicates, data shows that fluctuations in the family income are concurrent with downturns and upturns in the business cycle. By comparing these two graphs, it is clear that the rise and fall of the business cycle correlates with the rise and fall of income. For example, the recession began in 2008. The graph of the business cycle shows that during this recession, employment and output have de-creased. The graph of family income shows that during this recession, family income has also decreased....
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This note was uploaded on 02/02/2011 for the course ECON 102 taught by Professor Rossana during the Fall '08 term at University of Michigan.
- Fall '08