Mr. Maurer
AP Economics
Chapter 27.1 and 27.2 – Unemployment
Read pages 591 – 600 and answer the following questions. As you work, write down any
questions you have about this material and be prepared to ask them next class.
Part A – The Business Cycle
1. Identify and explain the four phases of the business cycle.
2. What does figure 27.1 tell you about the business cycle and long-term trends?
3. What causes have economists suggested for the business cycle? Which cause do most
economists agree on?
Part B – Unemployment
1. Explain exactly what the unemployment rate measures.
2. Identify the 3 types of unemployment and explain each.
3. Define “full employment” and “natural rate of unemployment.”
4. Look at Figure 27.3. How is it that actual GDP can exceed potential GDP as it did in the late
1990s? That seems crazy.
Part C – Your Questions
1. Write down any questions you have about this material and be prepared to ask them next class.
Mr. Maurer
AP Economics
Chapter 27.1 and 27.2 – Unemployment
Read pages 591 – 600 and answer the following questions. As you work, write down any
questions you have about this material and be prepared to ask them next class.
Part A – The Business Cycle
1. Identify and explain the four phases of the business cycle.
2. What does figure 27.1 tell you about the business cycle and long-term trends?
3. What causes have economists suggested for the business cycle? Which cause do most
economists agree on?
Part B – Unemployment
1. Explain exactly what the unemployment rate measures.
2. Identify the 3 types of unemployment and explain each.
3. Define “full employment” and “natural rate of unemployment.”
4. Look at Figure 27.3. How is it that actual GDP can exceed potential GDP as it did in the late
1990s? That seems crazy.
Part C – Your Questions
1. Write down any questions you have about this material and be prepared to ask them next class.