Chap 13 Economics

¡Supera tus tareas y exámenes ahora con Quizwiz!

business fluctuations

changes in real GDP marked by alternating periods of expansion and contraction that occur on an irregular basis

Stagflation

combination of stagnant economic growth and inflation

depression scrip

currency issued by towns, chamber of commerce, and other civic bodies during the Great Depression of the 1930s

recession

decline in real GDP lasting at least two quarters or more

GDP gap

difference between what the economy can and does produce

demand-pull inflation

explanation that prices rise because all sectors of the economy try to buy more goods and services than the economy can produce

cost-push inflation

explanation that rising input costs, especially energy and organized labor, drive up the prices of products

trend line

growth path the economy would follow if it were not interrupted by alternating periods of recession and recovery

Outsourcing

hiring outside firms to perform non-core operations to lower operating costs

Consumer Price Index (CPI)

index used to measure price changes for a market basket of frequently used consumer items

implicit GDP price deflator

index used to measure price changes in gross domestic product

Producer Price Index (PPI)

index used to measure prices received by domestic producers

economic model

macroeconomic expression used to describe how the economy is expected to perform in the future

leading economic index (LEI)

monthly statistical series that uses a combination of ten individual indicators to forecast changes in real GDP

civilian labor force

noninstitutionalized part of the population, aged 16 and over, either working or looking for a job

expansion

period of uninterrupted growth of real GDP, industrial production, real income, and employment lasting for several years or more; recovery from recession

debtors

persons or institutions that owe money

creditors

persons or institutions to whom money is owed

trough

point in time when real GDP stops declining and begins to expand

peak

point in time when real GDP stops expanding and begins to decline

unemployment rate

ratio of unemployed individuals divided by total number of persons in the civilian labor force, expressed as a percentage

creeping inflation

relatively low rate of inflation, usually 1 to 3 percent annually

market basket

representative collection of goods and services used to compile a price index

depression

state of the economy with large numbers of unemployed, declining real incomes, overcapacity in manufacturing plants, and general economic hardship

unemployed

state of working for less than one hour per week for pay or profit in a non-family-owned business, while being available and having made an effort to find a job during the past month

leading economic indicator

statistical series that normally turns down before the economy turns down or turns up before the economy turns up

price index

statistical series used to measure changes in the price level over time

deflation

sustained decrease in a general level of prices of goods and services

inflation

sustained rise in the general level of prices of goods and services

business cycle

systematic changes in real GDP marked by alternating periods of expansion and contraction

structural unemployment

unemployment caused by a fundamental change in the economy that reduces the demand for some workers

seasonal unemployment

unemployment caused by seasonal changes in the demand for certain kinds of labor

technological unemployment

unemployment caused by technological developments or automation that make some workers' skills obsolete

cyclical unemployment

unemployment directly related to swings in the business cycle

frictional unemployment

unemployment that occurs when people take time to find a job

misery index

unofficial statistic that is the sum of monthly inflation and the unemployment rate

long-term unemployed

workers who have been unemployed for 27 weeks or more

base year

year serving as point of comparison for other years in a price index or other statistical measure

Hyperinflation

abnormal inflation in excess of 500% per year; last stage of monetary collapse

Dow Jones Industrial Average

an index of 30 representative stocks used to monitor price changes in the overall stock market


Conjuntos de estudio relacionados

Intro to Astronomy: Hw Questions First Exam

View Set

Parallel and Perpendicular lines

View Set

Human Resource Management Chapter 8

View Set

Adult Health (Chronic Illness and Older Adults)

View Set

Aceable 6 Promulgated Contracts Practice Test

View Set