Draw a graph representing a business cycle and mark the points or areas of potential GDP, full employment, natural unemployment, and cyclical unemployment.
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- The change in the business cycles can impact how the economy is operating. Explain how an increase in the unemployment rate would impact how businesses will operate. Analyze how economic growth can be impacted by changes in the unemployment rate.What is a business cycle? How do businesses adapt to periods of contraction and expansion?How unemployment affect the GDP of the economy