The economy began a recovery in the second quarter of 1975 and made significant advances in its first year. In the last two quarters, however, the pace of economic activity has been less robust. The economy’s performance in this most recent period has triggered a great deal of concern over the sustainability of the recovery. These fears have probably been intensified by a number of considerations, including the fact that the unemployment rate has risen recently—a development not generally observed at this point in a recovery.