Economic Unit 4 Lesson 2

inflation rate

A common term for the consumer price index rate (CPI).

inflation

A general increase in prices that results in a fall in the purchasing value of money.

recession

A period of economic decline during which trade and industrial activity are reduced; a severe recession is often called an economic depression.

deflation

A reduction of the general level of prices in an economy.

depression

A sustained, long-term downturn in economic activity in a national or global economy; generally the term "depression" is used to describe a severe recession.

non-farm employment change report

A weekly report that shows the change in employment of private workers, not including farm workers; it shows how many new jobs were created the previous month and is more reliable than the unemployment rate to show changes for workers.

GDP per Capita

The gross domestic product (GDP) divided by the number of people in the country.

unemployment rate

The percentage of workers out of work at a given moment in time.

Consumer Confidence Index (CCI)

A measure of consumer confidence as determined by savings and spending patterns.

Consumer Price Index (CPI)

A measure of the variation in prices paid by consumers for retail goods and other items; often called the "inflation rate) by the general public.

Current Employment Statistics (CES)

A monthly survey of businesses and government agencies in order to provide detailed industry data on employment, hours, and earnings of workers on non-farm payrolls.

Industrial Production Index (IPI)

An economic indicator measuring the amount of output from the manufacturing, mining, electric and gas industries.

housing starts

An economic indicator reflecting the number of privately owned new housing units on which construction has been started in a given period.

average weekly hours

An economic indicator that shows the average weekly hours put in by manufacturing workers; it is considered to be a leading indicator of the business cycle.

Producer Price Index (PPI)

An index of prices measured at the wholesale (producer) level; indicates the future directions of the CPI.

lagging indicator

An indicator that occurs after the start of a recession or period of growth.

coincident indicator

An indicator that occurs at roughly the same time as the conditions it measures.

leading indicator

An indicator that occurs before the start of a recession or period of growth.

census

An official count of a population that generally records various data on individuals.

quality bias

Occurs when an index ignores changes in the quality of the goods it measures.

substitution bias

Occurs when two or more similar items have a change of price relative to each other.

Gross Domestic Product (GDP)

The monetary value of all the finished goods and services produced in a country over a specific time period.