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AP Macroeconomics-Module 2 Study
Guide with Complete Solutions
business cycle - Answer✔✔-The short-run alternation between economic downturns, known as
recessions, and economics upturns, known as expansions
depression - Answer✔✔-A very deep and prolonged downturn
recession - Answer✔✔-A period of economic downturn when output and employment are falling; also
referred to as a contraction
expansion - Answer✔✔-Period of economic upturn in which output and employment are rising; most
economic numbers are following their normal upward trend; also referred to as a recovery
employment - Answer✔✔-The total number of people currently employed for pay in the economy,
either full-time or part-time
unemployment - Answer✔✔-The total number of people who are actively looking for work but aren't
currently employed
labor force - Answer✔✔-The number of people who are either actively employed for pay or unemployed
and actively looking for work; the sum of employment and unemployment
unemployment rate - Answer✔✔-The percentage of the total number of people in the labor force who
are unemployed, calculated as unemployment/(unemployment+employment)
Page 1/2
AP Macroeconomics-Module 2 Study
Guide with Complete Solutions
business cycle - Answer✔✔-The short-run alternation between economic downturns, known as
recessions, and economics upturns, known as expansions
depression - Answer✔✔-A very deep and prolonged downturn
recession - Answer✔✔-A period of economic downturn when output and employment are falling; also
referred to as a contraction
expansion - Answer✔✔-Period of economic upturn in which output and employment are rising; most
economic numbers are following their normal upward trend; also referred to as a recovery
employment - Answer✔✔-The total number of people currently employed for pay in the economy,
either full-time or part-time
unemployment - Answer✔✔-The total number of people who are actively looking for work but aren't
currently employed
labor force - Answer✔✔-The number of people who are either actively employed for pay or unemployed
and actively looking for work; the sum of employment and unemployment
unemployment rate - Answer✔✔-The percentage of the total number of people in the labor force who
are unemployed, calculated as unemployment/(unemployment+employment)
Page 1/2
