Economics Ch 8

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  1. Business cycle
    • fluctuation in the level of economics activity
    • measured by rate of unemployment and changes in real GDP
  2. recession
    • downturn in economic activity
    • declining real GDP and rising unemployment
  3. depression
    prolonged and severe recession
  4. civilian labor force
    number of people 16+ years old either employed or not
  5. unemployed
    person not currently working, actively looking for work, or person waiting to begin or return to a job
  6. labor force participation rate
    number of people in the civilian labor force 16+ years old
  7. unemployment rate
    • percentage of people in the labor force who are unemployed
    • equal to the number of people unemployed divided by the number of people in the labor force
  8. employement / population ratio
    number of people 16+ ad over employed as civilians divided by the total civilian population 16+ years old
  9. frictional unemployment
    unemployment cause by constant change in economy that prevent qualified person to match with current job openning
  10. structural unemployment
    • cause by structural charactiristics of economy which make very hard for job seekers to find employment
    • job opening which people are not qualified for
  11. cyclical unemployment
    due to recessionary business conditions and inadequate labor
  12. full employment
    level of employment that results from the efficient use of the labor force taking into account the normal rate of unemployment
  13. natural rate of unemployment
    • normal unemployment rate due to frictional and structural condition
    • occur when economy is operating at a sustainable rate of output
  14. potential output
    level of possible output according to labor force, productivity
  15. unanticipated inflation
    unexpected increase in the general level of prices
  16. anticipated inflation
    expected increase in general level of prices
Card Set
Economics Ch 8
Economic class @ NU
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