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The unemployment rate rose from 5.0 percent in January to 7.3 percent by December. The trough occurred in the second quarter of 2009, according to the NBER. That was thanks to the stimulus spending from the American Recovery and Reinvestment Act.The unemployment rate continued to worsen, reaching 10.0 percent in October.The 2008 recession was so nasty because the economy immediately contracted 2.7 percent in the first quarter of 2008.

The cycle is a useful tool for analyzing the economy. Investors are in a state of "irrational exuberance." That's when they create asset bubbles. It is the month when the expansion transitions into the contraction phase. But you can look at the indicators yourself to determine what phase of the business cycle we are currently in. Legislators uses fiscal policy to influence the economy.

Three factors cause each phase of the business cycle.

Those are the forces of supply and demand, the availability of capital and consumer confidence. The economy grows when there is faith in the future and in policymakers. See how this worked in each business cycles since 1929.

, cultural associations, including religious, philosophic, and aesthetic, with various numbers.

Humanity has had a love-hate relationship with numbers from the earliest times.