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15 Cards in this Set

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