1. Unit 5 Review

2. Business Cycle Systematic ups and downs of real GDP Phases Recession
Recovery/Expansion

3. Depression Can occur if recession becomes too severe Characteristics
Large unemployment
Acute shortages
Excess capacity in manufacturing plants

4. Stagflation Slow or stagnant economic growth Relatively high inflation
Relatively high unemployment
What is wrong with this picture?

5. Civilian Labor Force Total of employed and unemployed people
Above 16 years old
Able & willing to work
Not institutionalized (jail, hospitals)
Not in military, school full time, or retired

6. Unemployment Rate
Percent of people in labor force who actively want a job but are not employed
Unemployment
rate
unemployed
labor force x
100 =

7. Types of Unemployment Frictional Seasonal Structural Technological
Cyclical

8. Underemployment Employed at jobs below their capability level
Employed part-time when they want full-time work