Full employment

Chapter 2: Module Introduction to Macroeconomics ? Business Cycle: differences between downturns and upturns in macroeconomic Depression: Deep and prolonged downturn (ex: great depression) Recession: shorter economic downturns where output and employment are dropping (ex: state of the US now) Expansion: upturn where output and employment are rising Employment/Unemployment Employment: total number of people working for pay, rises in good economy Unemployment: total number of people who aren?t employed, rises in bad economy Labor Force: A country?s sum of employment and unemployment Unemployment Rate: percentage of labor force/people in country who are unemployed Aggregate Output Output: quantity of goods and services, decreases in bad economy