What was the state of the economy from 1996 to 1998?

Question

Global economy. Why do real wages and constantly seem to grow and what are business cycles

Answer 1

The economy was the best it has been in 30 years in the late 90's. Real wages usually increase when there are productivity increases because the equilibrium wage rate is equal to the marginal product of labor. However the economy is not in equilibrium but grows and the growth rate fluctuates and is sometimes negative (recessions) and at other times it grows rapidly as it did in the late 90's. These fluctuations are called the business cycle. During slow or negative growth periods there is a decreased demand for labor so there is unemployment and real wages do not keep up with productivity growth.
see http://www.visualizingeconomics.com/2007/07/22/real-gross-national-income-per-person/

Answer 2

F in awesome with Bill running this country