A country reports that over the last three consecutive quarters, its total output of goods and services has grown by an average of 4.5% annually, well above its historical average. During this same period, the national unemployment rate has fallen from 5% to 3.5%, and businesses are reporting record levels of investment in new machinery and factories. Which of the following best describes the state of this country's economy?

Relationship Between Output and Employment

Evaluating the Sustainability of an Economic Boom

Match each description of economic conditions to the phase of economic activity it most accurately represents.

Analyzing Economic Indicators

During a period of rapid economic expansion, it is typical for a country's total output to increase while the unemployment rate also rises as businesses become more selective in their hiring.

Causal Link in Economic Expansion

Arrange the following events in the most likely chronological order that characterizes an economy entering a period of rapid expansion.

A phase of the business cycle characterized by a rapid increase in a country's output and a falling unemployment rate is known as an economic ____.

An economy has maintained a low unemployment rate and has seen its total output grow at a steady, moderate rate for several years. Which of the following developments would provide the strongest evidence that this economy is shifting from stable growth into a boom phase?