00:01
So here we're talking a business cycle.
00:02
So first of all, let me just sketch a business cycle for you, right? a business cycle is referring to the behavior of the economy over time looking for something like this, right? you might have this time path of gdp.
00:15
So here we have what you would call the peak, and here you have the trap, right? this here is your recession, where the gdp is shrinking, and here you have your recovery.
00:31
Right and then your expansion as the economy comes back to life so at the trow the key is at trow things are bad right somewhere like here you know because again think about the trend here right you are below trend um things are bad but not getting worse right um at the trow you you've sort of hit the bottom right so but not getting worse so we need to read the possible answers here in that context.
01:07
A is the correct answer, right? no more unemployment losses.
01:16
Because things are as bad as they can get, right? unemployment can be quite bad, but it's not getting any worse.
01:23
If unemployment was still getting worse, you'd still be shrinking.
01:26
You haven't hit the trough yet.
01:28
So b is clearly wrong...