Economics Ch. 14 Cassarino edited
Unemployment Rate
# of unemployed persons divided by the total # of persons in the civilian labor force
To an economist, full employment is reached when the unemployment rate drops below....
4.5%
recession
6 months (2 quarters) of declining GDP
poverty guidelines
annual dollar amounts used to evaluate the money income that families and unrelated individuals receive
earned income tax credit
credit or cash to low income workers
An assembly line worker in an automobile plant is laid off during a recession. She is...
cyclically Unemployed
to calculate the inflation rate, economists
divide the change in the price level by the beginning price level and multiply by 100
welfare
economic and social programs that provide regular assistance from the government or private agencies because of need
expansion
economy begins to grow again - until a new peak
reasons for income inequality
education, wealth, discrimination
three theories on the cause of inflation
government deficit, wage-price spiral, excessive monetary growth
food stamps
government-issued coupons that can be redeemed for food
Lorenz curve
graph that illustrates how much the actual distribution of income varies from an equal distribution
enterprise zones are set up to
help start-up businesses get going in run-down or depressed areas
peak
highest point in the business cycle when the economy is booming
an individual is living in poverty if
his or her income is below a certain level
creeping inflation
inflation in the range of 1 to 3 percent per year
hyperinflation
inflation in the range of 500 percent a year and above
galloping inflation
intense inflation that can go as high as 100 to 300 percent per year
trough
lowest point in the business cycle
full employment
lowest possible unemployment rate with the economy growing and factors of production are efficient
automation
mechanical or other processes reduce the need for workers
Structural Unemployment
occurs when a fundamental change in the operations of the economy reduces the demand for workers and their skills
technological Unemployment
occurs when workers with less skills, talent, or education are replaced by machines that do their jobs
per capita
per person
unemployed
person who wants to work but cannot find a job
workfare
program that requires welfare recipients to provide labor in exchange for benefits
gross domestic product (GDP)
total value of all final goods and services produced in a country in one year
Frictional Unemployment
unemployment caused by workers who are "between jobs"
Cyclical Unemployment
unemployment directly related to swings in the business cycle
When a construction worker cannot work because of a winter snowstorm, he is...
seasonally unemployed
business cycle
swings up and down in the real GDP
A telephone receptionist loses his job when a computerized voice mail system is intstalled at his office. He is...
technologically unemployed
three consequences of inflation
the dollar buys less, speculation increases, the distribution of income is altered
