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Consider Figure 16.11 below, which shows household savings, the unemployment rate, and official NBER recession dates (the gray, vertical bars). Explain the relationship between these three data. What economic concept does this corroborate?Figure 16.11: Savings, Unemployment, and Recessions Consider Figure 16.11 below, which shows household savings, the unemployment rate, and official NBER recession dates (the gray, vertical bars). Explain the relationship between these three data. What economic concept does this corroborate?Figure 16.11: Savings, Unemployment, and Recessions

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First, we observe that in times of reces...

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