Business Cycles- Macro Topic 2.7

Jacob Clifford discusses the challenges of predicting economic recessions, comparing it to the inaccuracy of Groundhog Day weather predictions. He explains the business cycle, highlighting the human impact of economic downturns. The video introduces the Sahm Rule, a new indicator focusing on unemployment to predict recessions. Clifford emphasizes the difficulty of economic predictions and encourages viewers to engage with his content.

Discuss the human costs of economic downturns mentioned in the video.

What is the Sahm rule and how does it predict recessions?

What suggestions does Claudia Sahm make to prevent recessions once the unemployment rate hits a certain mark?