In Chapter 6, We Looked At How Business Cycles Are Normal

In chapter 6 we looked at how business cycles are normal and how unemployment ties closely with those business cycles

In Chapter 6, we examined the nature of business cycles, emphasizing their regular occurrence and the close relationship between economic fluctuations and unemployment rates. Specifically, the chapter highlighted how recessions—periods of economic decline—lead to increased unemployment, impacting individuals and communities. Understanding the mechanics and effects of these cycles is essential for comprehending economic stability and policy responses aimed at mitigating adverse effects during downturns.

Paper For Above instruction

The last significant recession the United States experienced was the recession of 2007-2009, often referred to as the Great Recession. This period was marked by a severe economic downturn triggered by the collapse of the housing bubble and the ensuing financial crisis. Many individuals and families felt the impact profoundly; job losses surged, and millions found themselves unemployed or underemployed. Personally, this recession affected me profoundly. I was a recent college graduate during this time, holding a degree in Marketing, and faced numerous challenges entering the job market amidst widespread layoffs and hiring freezes. Despite my efforts to find employment, opportunities were scarce, and I experienced firsthand the high unemployment rates that defined the period. The recession's impact prompted me to reconsider my career trajectory, leading me to pursue a Master's degree in Economics. This decision helped me acquire the skills necessary to secure a position in academia a few years later. The recession taught me the importance of resilience and adaptability during economic downturns, as well as the significance of continuous skill development to weather economic storms.

If I had not been directly affected by this recession, I would have spoken with a family member or friend who experienced job loss or financial instability during that period. For instance, my friend's father faced layoffs from his manufacturing job, which was heavily impacted by the recession. He shared how he had to cut back on expenses, delay retirement plans, and re-skill to stay relevant in his industry. From these conversations, I learned that individual experiences during recessions vary widely depending on industry, occupation, and personal circumstances. Some individuals, such as those working in essential services or government jobs, were less affected, highlighting the importance of job security in different sectors. These stories underscore the diverse impacts recessions have on people's lives and the resilience required to navigate economic hardships.

References

• Bernanke, B. S. (2013). The Federal Reserve and the Financial Crisis. Princeton University Press.
• Friedman, M., & Schwartz, A. J. (1963). A Monetary History of the United States, 1867-1960. Princeton University Press.
• Keynes, J. M. (1936). The General Theory of Employment, Interest, and Money. Harcourt Brace.
• Romer, C. D. (2019). The Lasting Effects of Recessions. National Bureau of Economic Research.
• Shiller, R. J. (2015). Irrational Exuberance. Princeton University Press.
• Federal Reserve Bank of St. Louis. (2010). The Recession of 2007–2009. Retrieved from https://www.stlouisfed.org
• Blanchard, O., & Johnson, D. R. (2013). Macroeconomics. Pearson.
• Mankiw, N. G. (2014). Principles of Economics. Cengage Learning.
• Barro, R. J. (2013). Economic Fluctuations and Business Cycles. Harvard University Press.
• Yellen, J. (2014). Perspectives on the US Economy. Federal Reserve Bank of San Francisco.