The Business .Cycle: Cyclical Unemployment and the Recession

Abstract

Education is the building block of future economic growth; the only way to continue the growth of GOP in the American economy is through this extremely important catalyst. Governmental decisions affect the growth and extremes of the unemployment swings in any economy. Firm's individual decisions on job destruction are tied closely to sectoral shifts; the random fluctuations in technology cause these shifts. Workers who experience the effects of the change of the seasons are called seasonal workers and their strife is a major part of the business cycle. The relationship between a recession and various economic determinants will be explored, in the aggregate as well as locally. Government policy can determine the length of unemployment spells due to unemployment insurance. Natural variations in the business cycle will be discussed versus shifts due to governmental policy in the short-run and long-run.