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15 Cards in this Set
- Front
- Back
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Long-run economic growth and the short-run fluctuations in output and employment
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Business cycle
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Measures the value of final goods and services produced within the borders of a country during a specific period, usually a year.
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Real GDP
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Totals the dollar value of all goods and services produced withing the borders of a country using their current prices during the year that they were produced.
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Nominal GDP
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The state a person is in if he or she cannot get a job despite being willing to work and actively seeking work.
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Unemployment
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An increase in the overall level of prices.
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Inflation
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Output, per person, is rising.
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Modern economic growth
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Occurs when current consumption is less than current output. (Or, current spending is less than current income)
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Saving
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Happens when resources are devoted to increasing future output
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Investment
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Situations in which there was an expectation for one thing to happen, but then something else happened.
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Shock
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Unexpected changes in the demand for goods and services
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Demand shock
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Unexpected changes in the supply of goods and services
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Supply shock
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A story of output that has been produced but not yet sold.
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Inventory
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When prices are inflexible.
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Sticky prices
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Flexible price product examples
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Corn, oil, and naurtal gas
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Inflexible price product examples
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Services
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