Answers must be clear and readable, or straight forward.

1. How would you define a recession?

2. Indicate any one year when there was a recession in the U.S. economy? Do not include the

present year 2020.

3. Name any one product whose sales would fluctuate (change) a great deal during a business

cycle.

4. Suppose the index of leading economic indicators falls for several months. Using this data as a

hint, what would you foresee happening to the future economy?

5. Which phase of the business cycle is the longest in average duration of time?

6. Provide any one reason that would cause the unemployment rate to increase but the number of

unemployed have not changed.

7. Suppose a full-time college student chooses not to look for and have a paying job. Is this person

considered unemployed? Briefly explain.

8. When there is full employment, which type of unemployment does not exist?

9.Assume a country's population (age 16 and over) is 1 million people. Calculate the

unemployment rate if there are 600,000 in the labor force and 60,000 of them are unemployed.

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