Chapter 13 - Liam
Dow Jones Industrial Average (DJIA) an index of 30 representative stocks used to monitor price changes in the overall stock market
Dow Jones Industrial Average (DJIA) an index of 30 representative stocks used to monitor price changes in the overall stock market
5. Interpreting How does education affect employment?
In general, people with higher levels of education have better job prospects; the difference is particularly marked between those who have attained upper secondary education and those who have not.
1. Explaining Describe the business cycle and explain what causes changes in it.
The business cycle is the pattern of expansion, contraction and recovery in the economy. Generally speaking, the business cycle is measured and tracked in terms of GDP and unemployment - GDP rises and unemployment shrinks during expansion phases, while reversing in periods of recession.
4. Analyzing How does inflation affect consumers?
When prices rise for energy, food, commodities, and other goods and services, the entire economy is affected. Rising prices, known as inflation, impact the cost of living, the cost of doing business, borrowing money, mortgages, corporate and government bond yields, and every other facet of the economy.
business fluctuations changes in real GDP marked by alternating periods of expansion and contraction that occur on an irregular basis
business fluctuations changes in real GDP marked by alternating periods of expansion and contraction that occur on an irregular basis
civilian labor force noninstitutionalized part of the population, aged sixteen and over, either working or looking for a job
civilian labor force noninstitutionalized part of the population, aged sixteen and over, either working or looking for a job
confined kept within
confined kept within
construction creation by assembling individual parts
construction creation by assembling individual parts
consumer price index (CPI) index used to measure price changes for a market basket of frequently used consumer items
consumer price index (CPI) index used to measure price changes for a market basket of frequently used consumer items
cost-push inflation explanation that rising input costs, especially energy and organized labor, drive up the cost of products for manufacturers and thus cause inflation
cost-push inflation explanation that rising input costs, especially energy and organized labor, drive up the cost of products for manufacturers and thus cause inflation
creditors persons or institutions to whom money is owed
creditors persons or institutions to whom money is owed
creeping inflation relatively low rate of inflation, usually 1 to 3 percent annually
creeping inflation relatively low rate of inflation, usually 1 to 3 percent annually
cyclical unemployment unemployment directly related to swings in the business cycle
cyclical unemployment unemployment directly related to swings in the business cycle
debtors persons or institutions that owe money
debtors persons or institutions that owe money
deflation sustained decrease in the general level of the prices of goods and services
deflation sustained decrease in the general level of the prices of goods and services
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
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
depression state of the economy with large numbers of unemployed, declining real incomes, overcapacity in manufacturing plants, and general economic hardship
depression state of the economy with large numbers of unemployed, declining real incomes, overcapacity in manufacturing plants, and general economic hardship
econometric model macroeconomic expression used to describe how the economy is expected to perform in the future
econometric model macroeconomic expression used to describe how the economy is expected to perform in the future
frictional unemployment unemployment caused by workers changing jobs or waiting to go to new ones
frictional unemployment unemployment caused by workers changing jobs or waiting to go to new ones
hyperinflation abnormal inflation in excess of 500 percent per year; last stage of monetary collapse
hyperinflation abnormal inflation in excess of 500 percent per year; last stage of monetary collapse
market basket representative collection of goods and services used to compile a price index
market basket representative collection of goods and services used to compile a price index
misery index unofficial statistic that is the sum of monthly inflation and the unemployment rate
misery index unofficial statistic that is the sum of monthly inflation and the unemployment rate
peak point in time when real GDP stops expanding and begins to decline
peak point in time when real GDP stops expanding and begins to decline
price index statistical series used to measure changes in the price level over time
price index statistical series used to measure changes in the price level over time
producer price index (PPI) index used to measure prices received by domestic producers; formerly called the wholesale price index
producer price index (PPI) index used to measure prices received by domestic producers; formerly called the wholesale price index
seasonal unemployment unemployment caused by annual changes in the weather or other conditions that prevail at certain times of the year
seasonal unemployment unemployment caused by annual changes in the weather or other conditions that prevail at certain times of the year
series group of related things or events
series group of related things or events
stagflation combination of stagnant economic growth and inflation
stagflation combination of stagnant economic growth and inflation
technological unemployment unemployment caused by technological developments or automation that make some workers' skills obsolete
technological unemployment unemployment caused by technological developments or automation that make some workers' skills obsolete
trend line growth path the economy would follow if it were not interrupted by alternating periods of recession and recovery
trend line growth path the economy would follow if it were not interrupted by alternating periods of recession and recovery
unemployment rate ratio of unemployed individuals divided by total number of persons in the civilian labor force, expressed as a percentage
unemployment rate ratio of unemployed individuals divided by total number of persons in the civilian labor force, expressed as a percentage
fundamental basic; an essential part
fundamental basic; an essential part
implicit GDP price deflator index used to measure price changes in gross domestic product
implicit GDP price deflator index used to measure price changes in gross domestic product
inflation sustained rise in the general level of prices of goods and services
inflation sustained rise in the general level of prices of goods and services
leading economic index (LEI) monthly statistical series that uses a combination of ten individual indicators to forecast changes in real GDP
leading economic index (LEI) monthly statistical series that uses a combination of ten individual indicators to forecast changes in real GDP
leading economic indicator statistical series that normally turns down before the economy turns down or turns up before the economy turns up
leading economic indicator statistical series that normally turns down before the economy turns down or turns up before the economy turns up
recession decline in real GDP lasting at least two quarters or more
recession decline in real GDP lasting at least two quarters or more
recover to get back
recover to get back
structural unemployment unemployment caused by a fundamental change in the economy that reduces the demand for some workers
structural unemployment unemployment caused by a fundamental change in the economy that reduces the demand for some workers
trough point in time when real GDP stops declining and begins to expand
trough point in time when real GDP stops declining and begins to expand
business cycles systematic changes in real GDP marked by alternating periods of expansion and contraction
business cycles systematic changes in real GDP marked by alternating periods of expansion and contraction
6. Comparing and Contrasting What makes structural and technological unemployment more serious than frictional unemployment?
Conversely, structural unemployment is caused by shifts in the economy, which makes it difficult for workers to find employment. ... Frictional unemployment is considered voluntary unemployment because workers choose to remain unemployed rather than take the first job they are offered.
3. Comparing and Contrasting What are the differences among creeping inflation, hyperinflation, and stagflation?
A: Stagflation occurs when a period of high inflation coincides with a stagnant economy and elevated unemployment. Hyperinflation happens when the rate of inflation reaches an extremely high level. Inflation usually maintains a positive relationship with economic growth.
2. Identifying Cause and Effect What post-Depression reforms kept the economy from reaching Depression-level lows during the Great Recession of 2008-2009? Give two examples.
The global financial crisis of 2007 has cast its long shadow on the economic fortunes of many countries, resulting in what has often been called the 'Great Recession'.1 What started as seemingly isolated turbulence in the sub-prime segment of the US housing market mutated into a full blown recession by the end of 2007.
base year year serving as point of comparison for other years in a price index or other statistical measure
base year year serving as point of comparison for other years in a price index or other statistical measure
expansion period of uninterrupted growth of real GDP, industrial production, real income, and employment lasting for several years or more; recovery from recession
expansion period of uninterrupted growth of real GDP, industrial production, real income, and employment lasting for several years or more; recovery from recession
depression scrip currency issued by towns, chambers of commerce, and other civic bodies during the Great Depression of the 1930s
depression scrip currency issued by towns, chambers of commerce, and other civic bodies during the Great Depression of the 1930s
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
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