Chapter 8 - Chapter 8: Economic Fluctuations, Unemployment,...

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Chapter 8: Economic Fluctuations, Unemployment, and Inflation Focus: What is a business cycle? How much economic instability has the US experienced? Why do economies experience unemployment? Are some types of unemployment worse than others? What do economists mean by full employment? How is full employment related to the natural rate of unemployment? How are anticipated and unanticipated inflation different? What are some of the dangers that accompany inflation? Business Cycle - Fluctuations in the general level of economic activity as measured by variables such as the rate of unemployment and changes in real GDP. Recession - A downturn in economic activity characterized by declining real GDP and rising unemployment. In an effort to be more precise, many economists define a recession as two consecutive quarters in which there is a decline in real GDP. Depression - A prolonged and very severe recession. Civilian Labor Force - The number of people sixteen years of age and over who are either employed or unemployed. To be classified as unemployed, a person must be looking for a job. Unemployment - The term used to describe a person not currently employed who is either (1) actively seeking employment or (2) waiting to begin or return to a job. Labor Force Participation Rate
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Chapter 8 - Chapter 8: Economic Fluctuations, Unemployment,...

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