How is the output gap measured? Briefly discuss the reasons for macroeconomic stability in the United States from 1950 until the start of the recession of 2007–2009. Explain why the costs of the...

Briefly discuss the reasons for macroeconomic

stability in the United States from 1950 until the

start of the recession of 2007–2009.

Explain why the costs of the business cycle do not

always average out over the cycle.