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21 Cards in this Set
- Front
- Back
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business cycle
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fluctuations in the economy between growth and stagnation
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coincident indicator
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a variable that changes at the same time as real output changes
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depression
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a severe, prolonged economic contraction
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discouraged workers
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workers who have stopped looking for a job because they believe that no one will offer them a job
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hyperinflation
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an extremely high rate of inflation
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inflation
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a sustained rise in the average level of prices
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lagging indicator
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a variable that changes after real output changes
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leading indicator
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a variable that changes before real output changes
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natural rate of unemployment
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the unemployment rate that would exist in the absence of cyclical unemployment
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nominal interest rate
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the observed interest rate in the market
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potential real GDP
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the output produced at the natural rate of unemployment
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real interest rate
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the nominal interest rate minus the rate of inflation
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recession
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a period in which real GDP falls
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underemployment
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the employment of workers in jobs that do not utilize their full productive potential
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unemployment rate
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the percentage of the labor force that is not working
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frictional unemployment
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a type of unemployment caused by workers voluntarily changing jobs and by temporary layoffs; unemployed workers between jobs
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cyclical unemployment
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a type of unemployment caused by insufficient total spending
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structural unemployment
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unemployment of workers whose skills are not demanded by employers, who lack sufficient skill to obtain employment, or who cannot easily move locations where job are available
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seasonal unemployment
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changes in employment levels within a time frame due to a change in season
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cost-push inflation
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inflation caused by rising costs of production
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demand-pull inflation
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inflation caused by increasing demand for output
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