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. Show work. 10. Use the following data to answer the question. Full-time employed 80 Part-time employed 25 Unemployed 10 People under the age of 16 30 Consumer Price Index 110 Calculate the labor force. Show work. 11. If the natural rate of unemployment is 4% and the actual rate of unemployment is 14%, then using Okun's Law calculate the percentage loss in GDP. Show work. 12. How can some types of unemployment be considered good? Briefly explain. 13. Give any one example of being structural unemployed. 14. What group of people in society would lose from unanticipated inflation. Briefly explain.