Using current statistics for inflation and GDP, what phase of the business cycle is the US economy currently in? How does this relate to the aggregate supply and/or aggregate demand curves?

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The US inflation rate as of March 2019 is 1.5%, down from 1.6% in February of 2019, further continuing the downward trend. The current GDP, on the other hand, was $19,390.60 billion as of 2017. The GDP has continued to rise steadily over the past several years. In order to determine what business cycle we are currently in, we first have to take a look at the different business cycles, which are expansion, peak, contraction, and trough.

Expansion is when the economy is growing and the GDP is continuing to rise, with inflation being around 2%.

The peak occurs when both GDP rates and inflation rates are high, typically over 2%.

Contraction is the downfall of this peak, where GDP rates are falling; the trough, on the other hand, is the bottom of the contraction, where levels bottom out before another expansion phase.

Because the US economy is seeing steady growth within GDP and has an inflation rate of around 2%, we are currently in the expansion phase.

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