Consider the USA macroeconomic data provided below. Describe the state of the macroeconomy in terms of the business cycle for the period from 1996 to 1999.
[Source: Economic Report of the President 2003; Tables B-2, B-35, B-63].
real GDP real GDP inflation unemployment
growth rate rate (%) rate (%)
(1996 dollars) (%) (CPI-U) (civilian labor force)
1995 $7.544 trillion +2.67% 2.8% 5.6%
1996 $7.813 trillion ? 3.0% 5.4%
1997 $8.160 trillion ? 2.3% 4.9%
1998 $8.509 trillion ? 1.6% 4.5%
1999 $8.859 trillion ? 2.2% 4.2%