Unemployment/Business Cycles/Inflation

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Author:
Kencollins08
ID:
133965
Filename:
Unemployment/Business Cycles/Inflation
Updated:
2012-02-09 03:14:55
Tags:
Econ2
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Description:
Unemployment/Inflation
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  1. Business Cycle
    Recurrent rises and falls in GDP over a period of years
  2. Recession
    Two consecutive quarters of real GDP decline
  3. Economic Growth
    measured by the annual percentage change in real GDP in a nation
  4. Labor Force
    Employed + Unemployed
  5. Considered employed if...
    Working part time or full time
  6. Considered unemplyed if...
    Do not have a job but currently looking for work
  7. Discouraged Workers
    People who want to work, but have given up
  8. Frictional Unemployment
    Workers who are new jobs that exist (quit/in between jobs)
  9. Stuctural Unemployment
    unemployment caused by factors in the economy including lack of skills, change in product demand, or technological change
  10. Cyclical Unemployment
    relates to the state of the economy
  11. Full Employment
    is equal to the total frictional and structural unemployment rates
  12. Peak
    Phase of the business cycle during which real GDP reaches its maximum after rising during a recovery
  13. Trough
    Phase of the business cycle during which real GDP reaches its minimum after falling during a recession
  14. Recovery
    An upturn in the business cycle during which real GDP rises
  15. Leading Indicators
    variables that change before real GDP changes
  16. Unemployment Rate
  17. Inflation
    An increase in the overall price level over a period of time
  18. Deflation
    A continued fall in the overall price level over a period of time
  19. Disinflation
    Decrease in the inflation rate
  20. Consumer Price Index (CPI)
    Measure of the average change over time in the prices paid by urban consumers for a fixed market basket of consumer goods and services
  21. Nominal interest rate
    The actual rate of interest earned over a period of time.
  22. Real interst rate
    the nominal interest rate adjusted for inflation
  23. Demand-Pull Inflation
    caused by pressure on prices originating from the buyers side of the market (demand curve increase)
  24. Cost-Push Inflation
    caused by pressure on price originating from the sellers side of the market (supply curve decrease)

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